What Is an Audit?
- 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?
- 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 .
- VAT Registration UAE
- Corporate Tax Registration in UAE
Which Engagement Is Right for You?
- 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.
- 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
- 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 for efficient, transparent audit processes.
- Consultative approach to guide you through choosing the right assurance engagement.
FAQs – Audit vs. Review
An audit gives high assurance with extensive testing and an official opinion; a review gives moderate assurance through analytical procedures and inquiries
Yes—most mainland and Free Zone companies must undergo an annual statutory audit to renew their license and comply with UAE law
Only if your internal stakeholders or management deem limited assurance sufficient. Reviews do not meet regulatory audit requirements.
Reviews are generally much less costly and faster because they involve fewer procedures .
Yes—a review often highlights areas of concern, allowing you to address them before undergoing a full audit .
Audits typically take several weeks or months, depending on complexity. Reviews usually conclude in days to a few weeks.
If speed and affordability are key—and you’re not required to issue a formal opinion—a review may be the smart choice.