Legislation Details
- Full Title: Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession
- Law Type: Federal Law
- Law Number: No. (48) of 2022
- Issued Date: 11 May 2022
- Effective Date: 13 Sep 2022
- Official Gazette: No. 727
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 49
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes the executive regulations for Federal Law No. (12) of 2014 Regulating the Auditing Profession. It sets out the requirements and procedures for registering auditors, both natural persons and legal entities, in various registers maintained by the Ministry of Economy. The Resolution also defines the obligations, rights, and disciplinary mechanisms governing the auditing profession in the UAE. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022) The law is significant for businesses and individuals working in the auditing sector, as it provides a comprehensive regulatory framework to ensure the integrity and competence of auditors operating in the UAE. It also empowers the government to oversee and discipline auditors, thereby enhancing the reliability of financial reporting and auditing services. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to establish the executive regulations for Federal Law No. (12) of 2014 Regulating the Auditing Profession. It applies to all natural persons and legal entities practicing the auditing profession in the UAE, as well as those engaged in related activities such as financial reporting, accounting, and forensic audit. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 1-2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Fellowship Certificate: The fellowship certificate approved by the Ministry of Economy.
- Register: Any register of auditors set forth in Article 2 of the Resolution, created by the Ministry for recording auditors.
- Electronic Auditor Program: An information system in the Ministry's network for processing, managing, and storing electronic information on auditors' services.
- Law: Federal Law No. (12) of 2014 Regulating the Auditing Profession, as amended.
(Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 1)
What are the main obligations and requirements?
The Resolution imposes the following key obligations and requirements: 1. Auditors must meet specific criteria to be registered in the relevant register, including holding a valid fellowship certificate, having the required academic qualifications and practical experience, and being of good conduct. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 4) 2. Registered auditors must maintain professional liability insurance and keep proper records, files, and data. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 16-17) 3. Legal entities practicing the auditing profession must meet additional requirements, such as having partners registered as auditors and obtaining a valid license. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 8) 4. Auditors must notify the Ministry of any modifications or changes to their registration details. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 12)
What licensing, registration, or approval requirements exist?
The Resolution establishes the following registration and approval requirements: 1. Natural persons who wish to practice the auditing profession must register in the "Register of Auditors of Natural Persons Who Practice the Profession" and meet the specified criteria. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 4-5) 2. Legal entities, including local audit firms and branches of foreign audit firms, must register in the "Register of Auditors of Legal Persons That Practice the Profession" and provide the required documents. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 8-9) 3. The Ministry must approve the application for registration of an auditor in the relevant register. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 10)
What rights and protections does this law provide?
The Resolution does not explicitly mention any specific rights or protections granted to auditors or other parties. The law focuses on the registration requirements, obligations, and disciplinary mechanisms governing the auditing profession.
Which authorities or bodies are responsible for enforcement?
The Ministry of Economy is responsible for the following key enforcement and governance functions under this Resolution: 1. Maintaining the various registers of auditors and related activities. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 2) 2. Approving applications for registration of auditors and issuing electronic certificates. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 10) 3. Establishing a Disciplinary Board to oversee and discipline auditors. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 18)
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance. The legislation only outlines the registration requirements, obligations, and disciplinary mechanisms governing the auditing profession, without detailing any specific penalties.
What fees, charges, or financial provisions are specified?
The Resolution does not mention any fees, charges, or financial provisions related to the auditing profession. It focuses on the registration and regulatory requirements without addressing financial aspects.
What exemptions or exceptions apply?
The Resolution does not provide any explicit exemptions or exceptions. It applies to all natural persons and legal entities practicing the auditing profession or related activities in the UAE.
How are disputes resolved under this law?
The Resolution does not specify any dispute resolution mechanisms. It only establishes a Disciplinary Board to oversee and discipline auditors, without detailing the procedures for resolving disputes. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 18)
What are the key deadlines and time limits?
The Resolution includes the following key deadlines and time limits: 1. Auditors registered before the issuance of this Resolution must obtain a fellowship certificate within two years. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 4) 2. Auditors must apply for transfer to the register of natural persons who do not practice the profession within 30 days of any reason preventing them from practicing. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 6) 3. Registration in the registers is valid for three years from the date of approval, unless the auditor no longer meets the requirements. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Art. 10)
How does this law interact with other UAE legislation?
This Cabinet Resolution is issued in relation to Federal Law No. (12) of 2014 Regulating the Auditing Profession, which it aims to provide executive regulations for. The Resolution also references the following related legislation: - The Constitution of the UAE - Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers, as amended - Cabinet Resolution No. (21) of 2016 Concerning the Executive Regulations of Federal Law No. (12) of 2014 Regulating the Auditing Profession (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022, Preamble)
When did this law come into effect?
This Cabinet Resolution No. (48) of 2022 Concerning the Executive Regulations of Federal Law No. (12) of 2014 Regulating the Auditing Profession came into effect on 13 September 2022, as per the Effective Date mentioned in the legislation details. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession, 2022)
Source Documents
This article analyses Cabinet Resolution Concerning the Executive Regulations of Federal Law Regulating the Auditing Profession for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.