Accounting Review

Accurate financial statements are essential for tax compliance, audits, financing, investor discussions and confident business decisions.

Our accounting review services in UAE help businesses identify accounting inconsistencies, incomplete reconciliations, unusual balances and financial reporting issues before they become larger problems.

We review the structure and quality of your accounting records, financial statements and supporting schedules and highlight areas that may require correction or further investigation.

Whether you are preparing for an annual audit, Corporate Tax filing, investor due diligence, bank financing or year-end reporting, an independent accounting review can give management a clearer understanding of whether the accounts are ready for the next stage.

What Is an Accounting Review?

An accounting review is a structured assessment of a company’s financial records and financial statements. Depending on the agreed scope, it may also function as a financial statement review UAE businesses use to identify reporting inconsistencies, incomplete reconciliations and areas requiring further attention before accounts are finalised.

Depending on the agreed scope, it can involve:

• Reviewing financial statements
• Analysing unusual movements and balances
• Checking reconciliations
• Reviewing accounting classifications
• Identifying missing supporting information
• Assessing financial statement presentation
• Reviewing selected accounting policies
• Highlighting potential IFRS issues
• Comparing accounting information with relevant tax records
• Identifying areas that should be corrected before an audit

The exact procedures depend on whether the engagement is an accounting health check, pre-audit review or formal assurance review.

Is an Accounting Review the Same as an Assurance Review?

Not necessarily.

A general accounting or pre-audit review may be an advisory engagement designed to identify accounting problems and improve financial statement readiness.

A formal financial statement review performed as an assurance engagement is different. Where it is carried out by an appropriately authorised practitioner under an applicable review standard such as ISRE 2400 (Revised), the engagement is designed to provide limited assurance rather than the reasonable assurance associated with an audit.

Businesses should therefore confirm exactly what type of review they require before the engagement begins.

Why Do UAE Businesses Need Accounting Reviews?

Accounting errors do not always become visible immediately. A structured bookkeeping quality check UAE businesses undertake before year-end can help identify incomplete records, unreconciled balances, and classification issues before they affect financial reporting, tax preparation, or audit readiness.

Problems may remain hidden until:

• External auditors begin fieldwork
• Corporate Tax calculations are prepared
• VAT reconciliations are completed
• A bank requests financial statements
• An investor begins due diligence
• Management reviews year-end results
• An acquisition or business sale is planned

A structured review helps identify problems earlier, when they are generally easier to investigate and correct.

Does an Accounting Review Replace a UAE Statutory Audit?

No. An accounting review should not be presented as a substitute for a statutory audit where an audit is legally required. However, an accounting review before the annual audit that UAE companies undertake can help identify accounting gaps and prepare records before external auditors begin their work.

Under the UAE Commercial Companies framework, every joint stock company and limited liability company is required to have one or more auditors carry out an annual audit of its accounts. Companies are also required to prepare annual financial accounts, including a balance sheet and profit and loss account, using international accounting standards and principles.

Foreign companies and branches, other than representative offices, are also subject to specific annual financial statements and audit requirements under the Commercial Companies Law.

An accounting review can therefore help a business prepare for an audit, but it does not replace an audit required by law, a regulator, a free-zone authority, a lender or another stakeholder.

UAE Accounting and Financial Reporting Requirements

A professional accounting review should consider the financial reporting framework applicable to the business.

UAE Commercial Companies Requirements

The UAE Commercial Companies Law requires companies to maintain accounting records and prepare financial accounts that provide a clear and accurate picture of their financial position.

The law also states that accounting records should generally be retained at the company’s headquarters for at least five years following the end of the relevant financial year.

The exact audit and filing requirements may depend on:

• Legal form
• Licensing authority
• Free-zone or mainland status
• Regulated activities
• Corporate Tax status
• Other sector-specific regulations

IFRS and Accounting Standards

For UAE Corporate Tax purposes, financial statements must be prepared using accounting standards accepted in the UAE.

The UAE Ministry of Finance has confirmed that IFRS is the applicable accounting standard for larger businesses with revenue exceeding AED 50 million, while businesses with revenue not exceeding AED 50 million may apply IFRS for SMEs, subject to the applicable conditions.

For businesses with revenue not exceeding AED 3 million, cash-basis accounting may also be permitted for Corporate Tax purposes subject to the relevant rules.

The accounting framework used in a financial statement review should therefore match the framework applicable to that particular business.

How Does an Accounting Review Support UAE Corporate Tax?

Corporate Tax calculations are closely connected with accounting records. Businesses that want to get books reviewed before FTA audit activity or other tax-compliance checks can use an accounting review to identify unreconciled balances, incomplete supporting documents, and inconsistencies between financial records and tax-related information.

For UAE Corporate Tax, the starting point for determining Taxable Income is generally the accounting net profit or loss shown in the financial statements, followed by the adjustments required under Corporate Tax legislation.

That makes reliable accounting particularly important.

A review can help identify areas such as:

• Incorrect income classification
• Expense classification issues
• Missing accruals
• Unreconciled balances
• Related-party transactions
• Depreciation inconsistencies
• Provisions
• Unrealised gains or losses
• Incomplete supporting documents
• Differences between financial records and tax-related information

The final Corporate Tax treatment should always be determined under the applicable UAE tax legislation and guidance.

Which UAE Businesses May Need Audited Financial Statements for Corporate Tax?

Corporate Tax audit requirements are separate from a general accounting review.

The UAE Ministry of Finance has issued specific decisions setting out when audited financial statements are required for Corporate Tax purposes.

The framework also includes specific requirements for Tax Groups, including audited special-purpose aggregated financial statements under the updated rules announced in 2025.

Businesses should therefore check their statutory, licensing, Corporate Tax and regulatory audit requirements separately rather than assuming that an accounting review satisfies them.

What Do We Review?

Our review can be structured around the financial areas most relevant to the business. Depending on the agreed scope, account supervision services UAE businesses require may include reviewing significant balances, reconciliations, accounting classifications, supporting schedules and other areas that affect the reliability of financial reporting.

Trial Balance and General Ledger

We review significant balances and unusual entries to identify items that may require further explanation, reclassification, or supporting documentation.

Bank Reconciliations

Bank balances are one of the first areas that should be reconciled before year-end reporting.

We review whether:

• Bank accounts have been reconciled
• Outstanding items are reasonable
• Old reconciling items remain unresolved
• Accounting balances agree with relevant bank records

Accounts Receivable

We assess customer balances and receivable schedules for issues such as:

• Old outstanding balances
• Credit balances
• Unallocated receipts
• Potential bad debts
• Differences between ledgers and supporting schedules

Accounts Payable

Supplier balances are reviewed for:

• Long-outstanding liabilities
• Debit balances
• Duplicate entries
• Missing invoices
• Unrecorded liabilities
• Reconciliation differences

Revenue Recognition

Revenue can have a significant effect on profitability and tax calculations.

Depending on the nature of the business, we review whether revenue appears to be recorded in the appropriate period and whether the accounting treatment is consistent with the applicable financial reporting framework.

Expense Recognition

We review significant expense categories for unusual movements, incorrect classifications or items that may belong to a different reporting period.

Fixed Assets and Depreciation

The review may include:

• Fixed asset registers
• Asset additions
• Asset disposals
• Depreciation methods
• Useful lives
• Capital versus expense classifications
• Reconciliation with the general ledger

Inventory Accounting

For businesses carrying stock, we can review:

• Inventory balances
• Cost classifications
• Inventory reconciliations
• Slow-moving or obsolete stock considerations
• Differences between inventory systems and accounting records

Accruals and Prepayments

We assess whether significant income and expenses have been recognised in the appropriate accounting periods.

Related-Party and Intercompany Balances

For businesses operating through groups or related entities, we review whether intercompany and related-party balances are identified and reconciled.

Payroll-Related Accounts

Payroll expenses and employee-related liabilities may be reviewed for reconciliation with available payroll reports and accounting records.

VAT Accounting Reconciliation

Accounting records can also be compared with VAT-related information to identify obvious inconsistencies between ledger balances and tax reporting.

This is not a VAT audit or tax opinion unless specifically included in the engagement scope.

Corporate Tax Accounting Readiness

We review whether the financial accounting records appear sufficiently organised to support the preparation of Corporate Tax calculations.

The review does not replace a formal Corporate Tax assessment unless tax advisory services are separately included.

Accounting Review vs Audit

Understanding the distinction is important before choosing a service.

Area	Accounting / Pre-Audit Review	Statutory Financial Audit
Main objective	Identify accounting issues and improve financial statement readiness	Express an independent audit opinion on financial statements
Assurance	None for a general advisory review; limited assurance only for a formal qualifying review engagement	Reasonable assurance
Typical procedures	Analytical review, reconciliations, accounting checks and management enquiries	Risk assessment, substantive testing, controls work where relevant, audit evidence and other audit procedures
Testing depth	Depends on agreed scope	Significantly more extensive
External confirmations	Not normally a core feature of a general accounting health check	May be performed where relevant to the audit
Audit opinion	No	Yes
Can replace a statutory audit?	No	Yes, when conducted by an appropriately authorised auditor and meeting the applicable requirements
Typical use	Audit preparation, accounting clean-up, management review, due diligence readiness	Statutory, regulatory, shareholder, lender or other audit requirements

Financial Statement Review vs Pre-Audit Review

These terms are sometimes used interchangeably, but they can refer to different services. An independent review of financial statements UAE businesses request generally focuses on whether the financial statements appear consistent, appropriately structured, and aligned with the applicable accounting framework.

Financial Statement Review

Focuses primarily on whether financial statements appear consistent, properly structured, and aligned with the applicable accounting framework.

Pre-Audit Review

A pre-audit review focuses more broadly on preparing the accounting environment before external auditors begin their work. For companies expecting a statutory audit, a pre-audit accounting review Dubai businesses undertake can help identify reconciliation issues, documentation gaps, and accounting adjustments that may need attention before audit fieldwork starts.

That may include:

• Reconciliations
• Supporting schedules
• Accounting adjustments
• Documentation gaps
• Ledger clean-up
• Financial statement preparation
• Audit-request preparation

For companies expecting a statutory audit, a pre-audit review in the UAE can reduce the number of accounting issues that need to be resolved during audit fieldwork.

Our Accounting Review Process

Step 1: Define the Review Scope

We first understand why the review is required.

For example:

• Upcoming statutory audit
• Corporate Tax preparation
• Investor due diligence
• Bank financing
• Business acquisition
• Internal management review
• Year-end financial reporting

The scope is then designed around that objective.

Step 2: Understand the Business

We review the company’s activities, accounting systems, reporting structure and key transaction cycles.

This helps identify the financial areas most likely to require attention.

Step 3: Review Financial Records

Relevant trial balances, general ledgers, reconciliations, schedules and financial statements are reviewed according to the agreed scope.

Step 4: Perform Analytical Review

We compare financial information using:

• Prior-period comparisons
• Monthly trends
• Ratios
• Margin movements
• Expense fluctuations
• Balance-sheet movements

Unexpected changes are identified for further discussion.

Step 5: Review Significant Accounting Areas

Higher-risk or material balances receive additional attention based on the nature of the business.

The review may focus on areas such as:

• Revenue
• Receivables
• Inventory
• Fixed assets
• Payables
• Accruals
• Related parties
• Payroll
• Cash and bank accounts

Step 6: Identify Accounting Gaps

We document issues such as:

• Missing reconciliations
• Unsupported balances
• Incorrect classifications
• Incomplete schedules
• Unusual entries
• Potential reporting issues
• Missing financial statement information

Step 7: Discuss Recommended Corrections

Management receives clear explanations of identified issues and the accounting actions that may be required before financial statements are finalised.

Step 8: Finalise the Review

The final output depends on the engagement.

It may include a review findings report, accounting-adjustment schedule, audit-readiness checklist or other agreed deliverables.

A formal assurance conclusion is provided only where the engagement has specifically been undertaken as a qualifying assurance review by an appropriately authorised practitioner.

What Do You Receive from an Accounting Review?

Depending on the agreed scope, deliverables may include:

Deliverable	Purpose
Accounting Review Report	Summarises significant findings and areas requiring attention
Adjustment Schedule	Lists proposed accounting corrections or reclassifications
Reconciliation Issues List	Highlights accounts requiring further reconciliation
Financial Statement Comments	Identifies presentation or reporting issues
Supporting Document Checklist	Shows documentation still required
Audit Readiness Checklist	Helps prepare accounting records before external audit
Management Recommendations	Suggests improvements to accounting processes and controls

The exact deliverables should always be agreed at the beginning of the engagement.

Who Should Consider an Accounting Review?

Companies Preparing for Their First Audit

Businesses that have never been audited may benefit from reviewing and organising their accounting records before external audit work starts.

Growing SMEs

As transaction volumes increase, accounting practices that worked for a small company may no longer provide sufficient financial control.

Businesses Preparing for Corporate Tax

Reliable books are important because accounting income forms the starting point for UAE Corporate Tax calculations.

Companies Seeking Finance

Banks and investors often require reliable financial information before evaluating a business.

Their exact requirements vary, and an accounting review should not be represented as a substitute for audited statements where audited information is specifically requested.

Businesses Preparing for Investment or Sale

Investors and buyers typically examine financial records carefully during due diligence.

A pre-transaction accounting review can help identify financial reporting weaknesses before that process begins.

Groups and Multi-Entity Businesses

Intercompany balances, related-party transactions and consolidation issues can become increasingly complex as a business group grows.

Businesses with Unreconciled or Outdated Accounts

A review can identify which areas need clean-up before management relies on the financial statements.

Why Review Financial Statements Before an External Audit?

Resolving accounting problems before the audit can make the year-end process more organised.

A pre-audit accounting review can help identify:

• Missing schedules
• Unreconciled accounts
• Unsupported balances
• Incorrect classifications
• Incomplete fixed asset records
• Inventory differences
• Related-party reconciliation issues
• Missing supporting documents
• Financial statement presentation issues

This allows management to work on known problems before external auditors begin detailed audit procedures.

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