Rasha Tabila (Abu Dhabi) The Ministry of Economy revealed today the start of work on the updated executive regulations of the law on the profession of accountants in the country on September 13, which will contribute to enhancing investor confidence in the business environment in the country and increasing the percentage of Emiratisation in the profession, as the percentage of citizens out of the total auditors The accounts, which number more than 1,300 auditors, 57%, which is equivalent to 740 Emirati auditors.
Abdul Aziz Al Nuaimi, Assistant Undersecretary of the Ministry of Economy for the Commercial Affairs Regulatory Sector, stressed during the briefing today that the UAE, thanks to the directives of its wise leadership, has made great strides in strengthening its efforts to create and develop the business environment in the country, in accordance with the best practices and standards applied globally, which in turn will work To achieve sustainable national development goals in various strategic sectors, in light of the objectives of the 50 projects and the determinants of the UAE Centennial 2071.
add quality
Al-Nuaimi confirmed that the updated executive regulations of Federal Law No. (12) of 2014 regulating the profession of account auditors in the country, pursuant to Cabinet Resolution No. (48) of 2022, which will be implemented starting from September 13, 2022, will provide a qualitative addition in a number of tracks that It enhances the country’s plans and strategy towards consolidating the strength of the national economy, making it more flexible and enhancing its global competitiveness, and will ensure the provision of the best accounting and financial services in accordance with the best practices followed globally.”
Al Nuaimi stressed that the updated executive regulations represent a new pivotal step in the framework of completing the legislative system for the business environment in the country, in a way that enhances the confidence of investors and the business community in the financial and accounting sector in the country, and supports the UAE’s prestigious investment position globally. By adopting, for the first time in the world, the financial reporting system, which links many basic and sub-fields of the profession, and developing the Emirati Fellowship Program, which is a condition for practicing the profession in the country, and working to increase the percentage of Emiratisation in the profession in its various fields.
Al Nuaimi reviewed the most prominent amendments included in the new regulation, in light of the keenness of the Ministry of Economy to implement the best standards of integrity and transparency for the work of practitioners in the country, and to enable them to create an added value for the national economy.
One of the most prominent amendments is to allow citizens who wish to practice the profession of auditing who do not hold a bachelor’s degree in accounting to practice it by specifying the conditions of practice for citizens and residents, the most important of which is completing 15 hours of accredited accounting courses, fulfilling the requirements of the certificate, experience, fellowship program and other conditions of practice that I have clarified The regulation, in addition to adopting the financial reporting system model, which makes the UAE one of the first countries in the world to adopt this advanced model.
Expand Activities
Among the amendments are also the expansion of the activities and areas of the financial reporting system, in addition to the audit of accounts, to include financial and administrative accounting, tax accounting, internal auditing and judicial auditing, and opening the way for adding other accounting activities in the future, in addition to developing a framework for the UAE fellowship certificate program and the mechanisms for obtaining them according to the highest standards applied globally. .
Among the most important amendments is also enabling the complete digital transformation of the procedures for licensing auditors, control, inspection, enforcement and periodic reports, and canceling the lump-sum insurance coverage amount of one million dirhams and replacing it with a percentage system, based on the total annual fees of the office or company practicing the profession, provided that a subsequent ministerial decision is issued to detail The specific segments and will be implemented when applying the regulation, in addition to canceling the item related to the national participation rate, estimated at 25% of the capital of accounting and auditing companies, in line with recent amendments to the Commercial Companies Law, as well as to increase foreign investment opportunities in the country’s economy, and among the amendments is determining the duration of experience The process required to practice the profession, which is 5 years after obtaining the educational qualification.
Among the amendments is also a requirement for non-nationals of the state to practice the field of auditing to have a minimum of years of experience within the state, by having one year experience if his experience outside the state is more than ten years, and two years if his experience outside the state is from five to ten years, and three years if his experience outside the country is from two to five years.
digital transformation
His Excellency Riyad Al Mubarak, Honorary President of the Association of Auditors, stressed the importance of developing a framework for the Emirati fellowship program through the regulation and making it a condition for practicing the profession, as there are foreign fellowship certificates recognized in the state, but it is necessary to have an Emirati fellowship that takes the capabilities of the applicant in relation to state legislation and new legislation.
On the digital transformation, Al Mubarak pointed out that the digital transformation is not only by the regulator, but by service providers who are accountants and auditors, as the requirements of investors differ at the present time. Services in the technical field.
5 activities and areas
Abdullah Saleh Al Hammadi, director of the Auditors Department at the Ministry of Economy, said that the number of auditors in the country is about 1,300, of whom about 57% are citizens.
He pointed out that this updated executive regulation creates qualitative opportunities for the profession of auditors, specifically for citizens and practitioners of this profession, in addition to that it will include 5 other activities and areas besides auditing, which are internal audit, judicial audit, financial, administrative and tax accounting.
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