Stop Worrying About FAD Clearance
The objective of regular monitoring of operation and routine Audits by the Finance Audit Department (FAD) supreme audit institution of Dubai is to regulate the financial legitimacy, ability, capability, low-cost execution, clearness, fairness etc. in public funds, and at the same time also to assess the proficiency, usefulness, and budget in scheduling, leading execution, governing and nursing of processes. AAB is the best auditing firm in Dubai which provides ease in such situations.
The FAD's perception is to glance at for more transparency, objectivity, and integrity in managing public funds.'
The Department assumes to exercise financial audit tasks on the following objects:
- Government departments, and public corporations and authorities.
- The Government owned Companies or in which the shareholding of the government amounts to (25%) or more of their capitals. It is also the desire of the department to audit the companies having the shareholding of less than 25% of their capital as obligatory.
The Government promises those companies smallest amount of profit, which is running with the support of the government’s financial subsidy.
Chairman or the Ruler of the policy making Council issues instruction to audit the accounts of any venture or another unit.
- In any object, the department realizes its relation with monetary violations committed in any of the audited entities, within the limits of the breaches.
While auditing any small business the FAD should keep in mind two things. Prepare yourself mentally for audit and also homework about the feelings of the FAD auditors, when they scrutinize your business.
In connection with the audit, a meeting with the FAD is scheduled, keeping their requirement to examine your business in accordance with their training manuals, which direct them to examine not only your tax return but also the following issues to be looked into.
The auditor may go through a certain process to detect the cash mishandling and distracting income into the own pocket if the business is also dealing in cash.
The auditor usually focuses their attention on finding the write off auto expenses of the car, where removed the set of wheels is so regular in most of the companies. It is the strong belief of the auditors and hence they will not admit it. It is beyond their acceptance that the car is 100% used for business and not used for personal use. Similarly, if the car is used for both business and personal use and fully a high percentage of business usage. In this connection, a good mileage log book be maintained.
All documents relating to travel and entertainment business expenses be documented properly, because the FAD is of the strong view that here they can hit gold, in case you claim entertainment, meals, or vacation costs as business expenses. a business relationship is explained in a reliable manner, taking partners to the ball game and calling it business won't soar.
Did you write off personal living costs as business expenses? Let's face it, every small-time operator has claimed a personal expense as a business one. For little things, such as a few personal long-distance calls on the business telephone line, the FAD won't get too excited.
If you have employees, are you filing payroll tax returns and making tax payments? Employment taxes are a routine part of every audit of a small enterprise.