General UAE Legal Questions LawCabinet Resolution No. (48) of 2022 Concerning the Executive Regulations of Federal Law No. (12) of 2014 Regulating the Auditing Profession

Article (1) Definitions The definitions mentioned in Federal Law No. (12) of 2014 shall apply to the present Resolution. Otherwise, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context requires otherwise: Fellowship Certificate : The fellowship certificate approved by the Ministry. Register : Any register of auditors set forth in Article (2) of the present Resolution and created in the Ministry for recording auditors in accordance with the provisions of the Law and the present Resolution.

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Cabinet Resolution of 2022 Concerning the Executive Regulations of Federal Law of 2014 Regulating the Auditing Profession 2 Electroni…

Article (2) Registers of Auditors Electronic registers shall be created in the Ministry for registering auditors, as follows: 1. Register of Auditors of Natural Persons Who Practice the Profession; 2. Register of Auditors of Natural Persons Who Do Not Practice the Profession; 3. Register of trainee auditors; 4. Register of Auditors of Legal Persons That Practice the Profession, including: a. Local audit firms and companies; b. Branches of foreign audit firms and companies; and c. Natural persons working for an auditor. 5. Register of Auditors of Natural and Legal Persons Practicing Activities Related to The Profession, such as preparation of statutory financial reports, financial and adminis…

Article (3) Data for Entry into the Registers of Auditors The registers referred to in Article (2) of the present Resolution shall include the following data and information: 1. Register of auditors of natural persons who practice the profession and who do not practice the profession and trainee auditors shall include the following data and information: a. Personal information of an auditor, provided that it includes his name, date of birth, date of obtaining the academic qualification, practical experience, address, phone numbers, e-mail and regular mail; b. An auditor’s registration number in the register and the date of obtaining the same; and c. An auditor’s authorized official signature…

Article (4) Requirements for Registration in the Register of Auditors of Natural Persons Who Practice the Profession 1. The following requirements shall be met by any person who is registered in the register of auditors of natural persons who practice the profession: a. He shall be fully competent. b. He shall have a valid ID. c. He shall be of good conduct and has not been convicted of a felony or a misdemeanor against honor or trust, under a final judgment, unless he has been rehabilitated. Moreover, he has not been subject to a disciplinary penalty for reasons affecting the integrity and honor of the profession or the position he occupied, unless three years has passed since the issuance…

Article (5) Documents for Registration in the Register of Auditors of Natural Persons Who Practice the Profession The application for registration in the register of auditors of natural persons who practice the profession shall be submitted through the electronic means on the form designated by the Ministry, accompanied by the following documents: 1. Valid fellowship certificate; 2. Valid ID; 3. Certificate of good conduct; 4. A copy of the academic degree certified or equated by the competent authority; 5. A copy of the experience certificate; 6. A colored and recent personal photograph; 7. A specimen of the auditor’s authorized signature; and

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Article (6) Documents for Transfer of Registration in the Register of Auditors of Natural Persons Who Do Not Practice the Profession The auditor shall submit an application for transfer of his registration to the register of auditors of natural persons who do not practice the profession within no more than thirty (30) days from the date of occurrence of any reason preventing him from practicing the profession through the means designated by the Ministry on the form designated for such purpose, accompanied by the following documents: 1. A letter from the applicant, indicating the reasons for applying for transfer to the register of auditors of natural persons who do not practice the professio…

Article (7) Re-registration in the Register of Auditors of Natural Persons Who Practice the Profession The registration in the register of auditors of natural persons who do not practice the profession shall be transferred to the register of auditors of natural persons who practice the profession in accordance with the following controls: 1. An application for re-registration in the register of auditors of natural persons who practice the profession shall be submitted. 2. The requirements for registration in the register of auditors of natural persons who practice the profession set forth in the Law and the present Resolution shall be met.

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Article (8) Documents for Registration in the Register of Auditors of Legal Persons that Practice the Profession The application for registration in the register of auditors of legal persons that practice the profession shall be submitted through the means designated by the Ministry on the form designated for such purpose, accompanied by the following documents: 1. A copy of the certificates of registration of all natural partners in the company in the register of auditors of natural persons who practice the profession. If one of the partners is a legal person established outside the state, a certificate from the competent authority in its state of nationality, indicating that it obtains a v…

Article (9) Submission of an Application for Registration of Branches of Foreign Companies in the Register The application for registration of branches of foreign companies in the register of auditors of legal persons that practice the profession shall be submitted through the means designated by the Ministry on the form designated for such purpose, accompanied by the following documents: 1. A letter indicating that the commercial registration department concerned does not object to the conduct of the registration procedures; 2. A copy of the memorandum and articles of association of the foreign parent audit company, translated into Arabic and duly certified; 3. A certificate that the parent…

Article (10) Approval of the Application for Registration of an Auditor in the Register 1. In case of approval of an auditor’s application for registration of his name in the register, the following procedures shall apply: a. The applicant shall be notified of the approval of his registration. b. The applicant shall be notified of the necessity to pay the registration fees. c. The applicant’s signature on the undertaking, set forth in Article (12) of the Law, shall be ensured. d. An electronic certificate shall be issued by the Ministry to indicate the registration of the auditor’s name in the register. Such certificate shall include the data set forth in

Article (11) Renewal of Registration in the Registers of Auditors 1. An application for renewal of registration in the registers of auditors who practice the profession shall be submitted to the Ministry on the form designated for such purpose within sixty (60) days preceding the expiry of the valid registration. The application shall be accompanied by the following documents:

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Cabinet Resolution of 2022 Concerning the Executive Regulations of Federal Law of 2014 Regulating the Auditing Profession 10 a. A copy of the valid ID of natural auditors; b. A valid copy of the documents of the professional liability insurance contract concluded with one of the insurers operating in th…

Article (12) Notice of Modification or Change The auditor whose registration data or accompanying documents have been modified or changed shall access his personal account in the electronic auditor program through the website of the Ministry to submit a notice of modification, subject to the following requirements: 1. The notice shall be submitted during the term of his registration in the registers of the Ministry. 2. The notice shall be submitted by marking the data of the electronic program referred to in this Article within a period not exceeding thirty (30) days from the date of occurrence of modification or change. 3. The duly certified documents and papers which confirm the occurrence…

Article (13) of the Law and any other detailed data. 2. Registration in the registers set forth in the present Resolution shall be valid for three (3) years from the date of written approval of the registration application, unless the registered auditor is no longer meets the requirements set forth in the Law and the present Resolution. 3. The registration applicant may file a complaint to the Ministry within fifteen (15) days from the date of being informed of the rejection of the registration application. 4. Subject to the preceding clause of this Article, the registration applicant may resort to the competent courts to file a challenge against the Ministry’s decision on the complaint with…

Article (13) Registration of Natural Persons in the Training Register Natural persons shall be registered in the register of trainee auditors in accordance with the requirements set forth in Article (4) of the present resolution, except for the requirement of practical experience.

Article (14) Method and Requirements of Training Audit firms and companies shall, upon implementing the training programs developed or approved by the Ministry for those who desire to be registered in the register of trainees, comply with the controls and standards set by the Ministry for the training programs with regard to diversifying the sources and methods of training to include the following fields: 1. Financial and administrative accounting;

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Cabinet Resolution of 2022 Concerning the Executive Regulations of Federal Law of 2014 Regulating the Auditing Profession 12 2. Tax accounting; 3. External auditing; 4. Internal auditing; and 5. Forensic audit, Aiming at achieving…

Article (15) Register of Natural and Legal Persons Practicing Activities Related to the Profession The provisions of Articles (3) and (4) of the present Resolution shall apply to the register of natural and legal persons practicing activities related to the profession to extent necessary to be consistent with the nature of such register, provided that the provisions of such register shall apply as determined by the Ministry in this regard.

Article (16) Controls for Professional Liability Insurance A professional liability insurance policy shall be issued for the auditor by an insurer licensed in the state. The insurance policy shall meet the following requirements: 1. It shall be issued in the name of the firm or company practicing the profession.

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Cabinet Resolution of 2022 Concerning the Executive Regulations of Federal Law of 2014 Regulating the Auditing Profession 13 2. It shall cover civil liability and professional errors with regard to damage caused by practicing the profession, unintentional errors and accidental omission, including liability arising from workers of the auditor, whether firms, companies…

Article (17) Controls for Keeping Records, Files and Data The auditor shall take the necessary procedures that enable him to keep his clients’ records, files and data. To this end, he shall: 1. Notify persons and entities whose accounts are audited by him that the period during which records are kept, referred to in the Law and the present resolution, is not less than five (5) years, commencing from the end of the last financial year during which he audits their accounts; 2. Maintain the confidentiality of the information mentioned in the records; 3. Continue to respect the obligation of keeping records and files in accordance with the provisions of the Law and the present Resolution in case…

Article (18) Disciplinary Board and its Working System 1. The Auditors Disciplinary Board formed in accordance with the provisions of Article (28) of the Law shall convene whenever necessary at the call of the Chairman of the Board and at least three members. 2. The quorum of the Board’s meetings shall be valid in the presence of the Chairman and at least two members. The Board’s decisions shall be issued by the majority of votes of the attending members. In case of a tie, the Chairman shall have the casting vote. 3. The Board’s rapporteur shall develop a record to write the minutes, work, recommendations and decisions of the Board. 4. The Board shall issue its decisions within no more than…

Article (19) Repeals Cabinet Resolution No. (21) of 2016 Concerning the Executive Regulations of Federal Law No. (12) of 2014 Regulating the Auditing Profession is hereby repealed. Moreover, any resolution or provision contradicting or inconsistent with the present Resolution is hereby repealed.

Article (20) Publishing and Entry into Force of the Resolution The present Resolution shall be published in the Official Gazette and shall enter into force after four (4) days from the date of its publishing. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: On: 10 Shawwal 1443 AH. Corresponding to: 11 May 2022 AD.

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