The Dubai International Financial Centre (DIFC) was formed in 2004 within the city, based on an expansive headquarters to serve as a large and multi-faceted business hub for the geographical region.
The centre has a separate judicial segment based on the common law tradition, an exchange, and a large and accomplished trade society. The area is home to many local and international financial institutions, part of which are global sovereign funds and investment opportunities.
Free zones are places in the United Arab Emirates that offer the unique opportunity for foreign businesses to retain full ownership of the shares of the entity, compared to those situated in the mainland, where this is not the case. DIFC is one such area, which also implements an English style legal system, whereby laws are issued in the English language.
In order to shore up and encourage the setup of businesses, the centre offers no taxes on corporate gains, which is bolstered by a system of tax treaties.
Part of these facilities is also the absence of limitations on the movement of capital and profit to the home country, and several important infrastructural facilities.
The centre also hosts NASDAQ Dubai, which lists ordinary shares.
Obligations Of An Auditing Firm
External auditors do the work of cross-checking and assuring key company finances, which is crucial if there is a substantial involvement of investors and lending institutions.
In addition to internal assurance and accounting mechanisms, external auditing organizations and personnel deliver a second front with which to represent the finances of a particular company.
In order to informally regulate the profession and provide useful guidance, international organizations come up with auditing standards and a range of expected protocol to follow.
The findings of external auditors will naturally be based on the information they get to examine during the process.
A large part of this stage has to do with determining risk, for the higher the company is on the riskiness scale, the more the findings will have to be supported by data.
As such as significant amount of information may have to be derived from external sources, such as lending groups and banks.
Nature Of The Company
Auditing firms in DIFC will end up doing a bulk of their work for corporate clients, which makes it necessary that they have the ability to assess contributory factors.
The financial data they examine is naturally going to be derived from processes, which are unique to the company in question.
This level of understanding will come from becoming aware of staple company practices and the quality of its internal control mechanisms.
This may also involve the company being compared to its peers in the segment, which will provide insight into whether reporting is accurate.