Regulating the Appointment, Reappointment, and
Performance Evaluation of
Auditors by the Entities Subject to Audit
General of the Financial Audit Authority,
After perusal of:
Federal Law No. (12) of 2014 Regulating the Audit Profession, its amendments, and its Implementing Bylaw;
Federal Law No. (4) of 2000 Establishing the Emirates Securities and Commodities Authority and Market and its amendments;
Federal Law by Decree No. (32) of 2021 Concerning Commercial Companies;
No. (1) of 2016 Concerning the Financial Regulations of the Government of
Dubai, and its Implementing Bylaw and its amendments;
Law No. (4) of 2018 Establishing the Financial Audit Authority; and
Law No. (12) of 2020 Concerning Contracts and Warehouse Management in the Government of Dubai,
Does hereby issue this
The following words and expressions, wherever mentioned in this Resolution, will have the meaning indicated opposite each of them unless the context implies otherwise:
The Emirate of Dubai.
The Financial Audit Authority.
of the Government departments; public agencies and corporations; public
councils and authorities; or other public entities affiliated to the
Government of Dubai.
An entity that is subject to audit by the FAA in accordance with the
provisions of the above-mentioned Law No. (4) of 2018 and the resolutions
issued in pursuance thereof.
A natural or legal person who is registered in accordance with the
above-mentioned Federal Law No. (12) of 2014 and who is appointed by an
Auditee, in accordance with the provisions of this Resolution, to conduct
The provisions of this Resolution apply to all Auditors appointed by Auditees by the effective date of this Resolution and to all Auditors to be appointed by them after the effective date hereof.
This Resolution aims to:
the appointment, reappointment, and performance evaluation of Auditors in
accordance with the relevant international best practices;
to protecting, preserving, and safeguarding public funds;
effective audit of the financial transactions of Auditees and effective
inspection of the data and documents related to their accounts and records;
the FAA’s efforts in maintaining effective control over Auditees; and
proper implementation by the Auditees of the legislation, policies,
regulations, bylaws, and resolutions governing their work.
Without prejudice to any applicable legislation, Auditees must observe
the following standards and procedures when appointing Auditors:
legislation or charter regulating the work of the Auditee must contain
provisions that require engaging an external auditor.
three (3) technical and financial Bids must be solicited from the specialised
audit firms and establishments licensed to operate in the Emirate. These Bids
must be accompanied by the documents set out in Schedule (1) attached to this
Resolution and by the documents supporting the validity of the information
referred to in that schedule.
submitted by Auditors must be evaluated from technical and financial perspectives
in accordance with the procurement principles and rules adopted by the Auditee
and the technical standards set out in Schedule (2) attached to this
may not be a person whose contract with the Auditee has been terminated on the
grounds of lack of professional competence or objectivity.
standards or procedures prescribed by the legislation and regulations
applicable to the Auditee must be complied with.
The winning bidder determined based on the outcome of the
technical and financial evaluation will be appointed by the Auditee under a
one-year contract, renewable in accordance with the provisions of this
An Auditor will be reappointed by an Auditee based on the outcome of his annual performance evaluation by renewing his contract on an annual basis, for up to four (4) years.
Upon completion of the annual audit of its financial statements, an Auditee must evaluate the performance of its Auditor in accordance with the evaluation standards set out in Schedule (3) attached to this Resolution and any other relevant standards adopted by the Auditee. The FAA must be notified of the outcome of the performance evaluation.
An Auditor appointed by an Auditee must:
with the legislation regulating the work of the Auditee;
that his licence and the registration of the auditors working for him are valid,
as per the relevant federal and local legislation, throughout the period of his
appointment by the Auditee;
the financial statements of the Auditee and give opinion on whether the Auditee
has complied with the accounting
standards it adopts, in accordance with the International Standards on Auditing;
that his report on the financial statements of the Auditee is signed by the auditor
in charge and is prepared in accordance with the International Standards on
Auditing adopted in this respect;
a plan for the financial audit of the Auditee and have it implemented by
experienced specialised auditors;
the approval of the Auditee prior to replacing any auditor it assigns to audit
the Auditee's senior management of any challenges he faces in the audit
process, any observations he reaches during the audit, and any incidents of
non-compliance with the legislation and rules regulating the work of the
the FAA of any violations detected in the course of auditing the Auditee;
the confidentiality of the Auditee's information and not disclose or divulge
such information to any person or entity without first obtaining the relevant
approval of the Auditee;
accept or undertake any work for the Auditee that may compromise the Auditor's
independence or professionalism; and
the FAA’s authorised employees to examine the documents and reports prepared by
In case of termination of the services of the Auditor appointed by an Auditee before expiry of the contract concluded with him, the Auditee must inform the FAA of the reasons for that termination within fifteen (15) days from the date of termination.
This Resolution will be published in the Official Gazette and will come into force on the day on which it is published.
Abdulrahman Hareb Al Hareb
Issued in Dubai on 5 October 2022
Corresponding to 9 Rabi al-Awwal
names of the Auditor's managing partner and all other partners involved in
the audit, together with the names of the team members conducting the audit
of the commercial licence, and the permit to practise the Profession, issued
by the competent entities
undertaking that all team members conducting the audit are independent and not
involved in any conflict of interest
details of any professional services, other than audit, provided by the
Auditor to any Auditee during the past three (3) years
résumés, professional qualifications, and work experience of the managing
partner and all the audit team members. These include the résumés of the
experts specialised in certain technical fields, such as tax audit and
information technology, where necessary.
proposed audit plan and methodology
of the quality control system and methodology implemented by the Auditor
that the Auditor has never been a party to any litigation arising from
misconduct or gross negligence in performing audit services during the past
five (5) years
conducting audit, an Auditor
must comply with the rules of professional conduct in accordance with the
relevant auditing standards, and with any other rules to be adopted in the Emirate.
- The managing partner, and
other partners and team members participating in the audit process, must not
have any personal interest in the Auditee.
must cover the risks related to the organisational structure and nature of
the operations of the Auditee.
must cover the scope of audit, including:
1. auditing the financial
2. testing, in accordance with the International
Standards on Auditing, the
effectiveness of the control systems as part of the audit of financial
3. in case of Government Entities,
verifying compliance with the requirements stipulated by the Law Concerning
the Financial Regulations of the Government of Dubai, and the Department of
Finance instructions, in respect of preparing and implementing the budget;
with the relevant circulars; and with any other legal and regulatory
requirements that have substantial effect on financial statements.
must be knowledgeable of the international accounting standards applicable to
the public and private sectors, as the case may be, and of any previous
auditing processes of the Auditee.
Proposed Audit Methodology and its
Conformity with the International Standards on Auditing
- The percentage of audit team
members holding professional qualifications must be taken into account as a
priority upon selection.
- Members of the proposed audit
team must have the skills and experience required and relevant to the field
of work of the Auditee.
- The audit team must be formed
taking into consideration the years of experience of each member.
Résumés of Audit Team Members
It must be verified that the Auditor has never been a party to any litigation arising from misconduct or gross negligence in performing audit services during the past five (5) years.
The submitted Bid must include proof that the Auditor implements quality control procedures in accordance with the adopted auditing standards
Auditor's Quality Control Procedures
Auditee's Satisfaction with the performance of the Auditor, taking
into account the following:
of the auditor in charge in the Auditee's board meetings;
of the audit team formed by the Auditor to the emergencies arising at the Auditee;
by the Auditor of his services to the Auditee in a timely manner.
coordination with the Auditee to ensure compliance with the key audit
deadlines agreed upon in the contract
by the Auditor with the obligations stipulated in this Resolution.
has been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application, reference
must be made to the original Arabic text. In case of conflict, the Arabic text