“Economy”: According to the updated executive regulations of the Federal Law Regulating the Profession
Allowing citizens who do not hold a bachelor’s degree in “Accounting” to practice “Auditing of Accounts” on conditions
5 years of practical experience required to practice the profession after the educational qualification.
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Abdulaziz Al-Nuaimi: The updated regulation is a new step in the framework of completing the legislative system for the business environment in the country.
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The Ministry of Economy revealed, during a media briefing organized yesterday, on the updated executive regulations of Federal Law No. (12) of 2014 regulating the profession of auditors in the country, that the regulation provides, for the first time, to allow citizens who wish to practice the profession of auditing who do not hold a bachelor’s degree. In the “Accounting” specialization, practicing it, by specifying the conditions for practicing it for citizens and residents.
Working with the list
The Assistant Undersecretary of the Ministry of Economy for the Commercial Affairs Regulatory Sector, Abdulaziz Al-Nuaimi, said that the work of the updated executive regulations regarding the regulation of the profession of auditors in the country will be implemented as of September 13, 2023.
He added that the updated regulation represents a new pivotal step in the framework of completing the legislative system for the business environment in the country, and ensures that it operates flexibly under one umbrella, in a manner that enhances the confidence of investors and the business community in the financial and accounting sector in the country, and supports the UAE's investment position globally, by laying the foundations A scientific organization to organize and raise the efficiency of the profession in the country, by adopting, for the first time in the world, the financial reporting system that links many basic and sub-fields of the profession.
It will also witness the development of the Emirati Fellowship Program, which is a condition for practicing the profession in the country, as well as increasing the percentage of Emiratisation in the profession, in line with the state's directions to empower national competencies in all strategic sectors.
Practicing the profession
Al-Nuaimi revealed that the regulation stipulates, for the first time, that citizens wishing to practice the profession of auditing who do not hold a bachelor’s degree in “accounting” are allowed to practice it, by specifying the conditions of practice for citizens and residents, the most important of which is completing 15 hours of approved accounting courses, and fulfilling the requirements Certificate, experience, fellowship program, and other conditions of practice set by the Regulations.
insurance coverage
He stated that the new regulation enables the complete digital transformation of the procedures for licensing auditors, control and inspection, enforcement, and periodic reports, and also includes canceling the lump-sum insurance coverage amount of one million dirhams, and replacing it with a percentage system, based on the total annual fees for the office or company practicing the profession. That a subsequent ministerial decision is issued to detail the specific segments, pointing out that it 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 the recent amendments to the Commercial Companies Law.
And he indicated that the regulation includes determining the period of practical experience required to practice the profession, to be five years after obtaining the educational qualification, in line with the international practices followed, noting that work is currently being done to set the conditions for practicing and practicing other areas of the profession referred to in the regulation.
number of auditors
For his part, the Honorary President of the Society of Accountants and Auditors in the country, Riyad Al Mubarak, said that the number of auditors in the UAE exceeds 1,300 auditors, 57% of whom are Emirati citizens.
Al Mubarak added that all accounting and auditing jobs are skilled jobs, and therefore an increase in the Emiratisation rate of 2% per year will apply to them, in accordance with the government’s decision that set Emiratisation targets, stipulating an increase in the Emiratisation rate by 2% in all skilled jobs in all private sector companies that have 50 or more employees.
He explained that the decision will be applied to registered applicants, as well as to all accounting and auditing companies, which increases Emiratisation opportunities, and makes reporting on the development of Emiratisation an important matter.
He pointed out that although the number of accountants and auditors appears to be few, the focus is on raising the quality of the content, so that the accounting reports are produced with a very high degree of efficiency and accuracy.
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