Audit vs. Review: What You Need to Know
When choosing an auditing company Dubai, understanding the difference between an audit and a review is essential to deciding what level of assurance your business needs. At AlZarooni Associates, a top-tier auditing firm Dubai, we’re here to guide you through the distinctions, helping you make informed choices for compliance and growth.
What Is an Audit?
An audit is a comprehensive, independent examination of a company’s financial statements and internal controls, aiming to provide high (reasonable) assurance that the financials are free from material misstatement Key Features:
- Deep, systematic analysis of financial records, including transaction testing and control evaluation
- Involves verifying documentation, external confirmations, inventory counts, and more .
- Results in a formal opinion: unqualified, qualified, adverse, or disclaimer
- Higher cost and longer timeframe due to rigor
- Often mandated by regulation or required by stakeholders like banks or investors
What Is a Review?
A review provides a limited, moderate assurance that the financial statements are plausible and free from obvious material misstatement Key Features:
- Uses analytical reviews and inquiries, but no extensive testing or control evaluation
- Provides a conclusion (“nothing came to our attention...”) rather than a definitive opinion .
- Faster and more cost-effective than an audit
- Ideal for internal reviews, management purposes, or situations where full assurance isn't required .
Audit vs. Review – Quick Comparison
| Feature | Audit | Review |
|---|---|---|
| Assurance Level | High (reasonable assurance) | Moderate (limited assurance) |
| Scope & Procedures | Deep testing, control assessment | Analytical reviews, management inquiry |
| Result | Auditor’s opinion expressed | Conclusion with limited assurance |
| Time & Cost | Longer, more expensive | Quicker, more affordable |
| When to Use | Regulatory needs, high risk/scope pride, stakeholder confidence | Management updates, small companies, internal use |
Why Choose an Audit or Review from a Dubai Auditing Firm?
1. Regulatory Requirements
- Most UAE entities—including Free Zone companies—require an statutory audit to renew trade licenses and meet FTA mandates
2. Stakeholder Confidence
- Banks, investors, and regulators seek audited financials to ensure transparency and reliability
3. Business Insights & Risk Management
- Audits uncover internal control weaknesses and inefficiencies, while reviews offer a timely check-up on financial health
4. Cost vs. Depth
- A review may be enough for internal insight; an audit is essential for formal assurance and legal compliance .
Which Engagement Is Right for You?
Choose an Audit if you need:
- A formal auditor’s opinion for lenders, investors, or regulatory bodies.
- A comprehensive assessment of internal financial controls.
- Full assurance on the accuracy and completeness of financial statements.
Choose a Review if you want:
- A cost-effective check on financial plausibility.
- A quick, limited assurance report for internal or management purposes.
- Confidence in numbers without undergoing a full audit.
How AlZarooni Associates Can Help
As a trusted auditing firm in Dubai, we offer:
- External Audits —statutory, due diligence, and more, aligned to UAE regulations.
- Internal Audits & Reviews —tailored assurance that fits your business’ scale and needs.
- Cloud-based accounting integration tfor efficient, transparent audit processes.
- Consultative approach to guide you through choosing the right assurance engagement.
Explore our full range of assurance services to determine which engagement aligns best with your goals:
FAQs – Audit vs. Review
1. What’s the main difference between an audit and a review?
An audit gives high assurance with extensive testing and an official opinion; a review gives moderate assurance through analytical procedures and inquiries
2. Is an audit mandatory in Dubai?
Yes—most mainland and Free Zone companies must undergo an annual statutory audit to renew their license and comply with UAE law
3. Can I use a review instead of an audit?
Only if your internal stakeholders or management deem limited assurance sufficient. Reviews do not meet regulatory audit requirements.
4. Which is cheaper: audit or review?
Reviews are generally much less costly and faster because they involve fewer procedures .
5. Can a review prepare me for a future audit?
Yes—a review often highlights areas of concern, allowing you to address them before undergoing a full audit .
6. How long does each engagement take?
Audits typically take several weeks or months, depending on complexity. Reviews usually conclude in days to a few weeks.
7. Which should I choose for internal planning?
If speed and affordability are key—and you’re not required to issue a formal opinion—a review may be the smart choice.
Ready to Enhance Your Financial Assurance?
Contact our expert team today to schedule a free consultation. Whether you need a full audit, a focused review, or ongoing cloud accounting support, AlZarooni Associates is here to guide you every step of the way.