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Compliance

Audit Preparation Checklist for UAE Companies

10 min read
Last updated: December 2025

Table of Contents

Why Audit Preparation Matters

Proper audit preparation reduces audit fees, prevents delays, and ensures a clean audit opinion. Well-prepared companies complete audits faster and with fewer adjustments.

Key Insight: Auditors expect organized records, complete documentation, and reconciled accounts. Preparation should begin 2-3 months before the audit fieldwork date.

Preparation Timeline

3 Months Before Audit

  • • Appoint external auditor
  • • Review prior year audit adjustments
  • • Plan inventory count procedures
  • • Update fixed asset register

2 Months Before Audit

  • • Complete year-end closing entries
  • • Reconcile all bank accounts
  • • Send customer confirmation letters
  • • Prepare receivables and payables schedules

1 Month Before Audit

  • • Finalize trial balance
  • • Complete all reconciliations
  • • Organize supporting documentation
  • • Prepare management representation letter

Required Documentation

Auditors will request comprehensive documentation. Prepare these documents in advance:

Audited financial statements (prior year)
Trial balance for current year
Bank statements and reconciliations for all accounts
All supplier invoices and payment vouchers
All customer invoices and receipts
Fixed asset register with depreciation schedules
Inventory count sheets and valuation
Payroll records and WPS confirmations
VAT returns and FTA correspondence
Loan agreements and repayment schedules
Trade license and memorandum of association
Lease agreements and rental contracts
Board resolutions and minutes
Related party transaction documentation

Key Reconciliations

These reconciliations are critical and will be reviewed in detail by auditors:

Bank Reconciliations

  • All bank accounts reconciled to ledger
  • Outstanding checks identified
  • Deposits in transit documented
  • Bank charges and interest recorded

Trade Receivables

  • Aged receivables schedule
  • Confirmation letters sent
  • Bad debt provision calculated
  • Subsequent collections verified

Trade Payables

  • Aged payables schedule
  • Supplier statement reconciliations
  • Accruals for uninvoiced goods
  • Post year-end payments reviewed

Inventory

  • Physical count completed
  • Valuation at lower of cost or NRV
  • Obsolete stock provision
  • Cut-off procedures documented

Common Audit Issues

Issues That Cause Audit Delays

  • • Unreconciled bank accounts
  • • Missing supplier invoices or payment proof
  • • Incomplete fixed asset registers
  • • Inventory count discrepancies
  • • Unsigned customer confirmations
  • • Missing board resolutions for major transactions
  • • Unclear related party transactions

Need Help Preparing for Audit?

Ratio prepares complete audit files with all schedules, reconciliations, and supporting documentation so audits complete faster and with zero adjustments.