In the UAE, there are two types of audit that matter to SMEs. First, an FTA audit — the tax authority can inspect your VAT or corporate tax records at any time, typically with advance notice but sometimes unannounced. Second, a statutory audit — legally required for certain entities including listed companies, banks, and many free zone businesses. Even if not legally required, banks and investors will typically request two to three years of audited accounts before extending credit or taking equity.
Watch out: The FTA has a five-year lookback window for VAT audits. Records from 2020 onwards remain in scope. Companies that kept informal records during the early VAT years are exposed.
See also: Audit Trail, Statutory Audit, Federal Tax Authority (FTA)
