The Real Estate Regulatory Authority (RERA), the regulatory arm of the Land Department in Dubai (LD), has accredited 18 auditing firms and bureaus to conduct financial auditing of real estate projects in Dubai. The step is part of RERA’s strategy to boost the adoption of good governance measures for the real estate sector and enhance transparency, thus strengthening investors’ confidence in the real estate sector.
Khalid Obaid Al Mutaiwei, Senior Director of the Real Estate Development Trust Account Department at RERA said: “We perceive this move as a milestone in implementing the standards of financial auditing to the real estate sector in accordance with best practices in auditing real estate companies and projects.”
RERA has inked cooperation agreements with the 18 approved audit firms to examine real estate projects exclusively registered with RERA. “Auditing will significantly facilitate the work of project trustees by preparing solid financial reports on real estate projects sold on the map,” added to Al Mutaiwei.
Issa Saeed Al Mansouri, Head of the Trust Accounts Section at RERA’s Trust Account Department, called on all real estate companies and account trustees registered with RERA to communicate with the auditing firms approved by RERA and posted on the official website of LD (www.dubailand.gov.ae) to initiate the auditing process on their projects for the fiscal period ending on December 31. RERA has set 31 January 2011 as a deadline for financial reports submission.
Al Mansouri highlighted that the audit firms approved by RERA are leading local and international institutions that are capable of conducting the following tasks:
- Examining and assessing the control and financial environment
- Examining the efficiency and effectiveness of control systems of companies and their accounts
- Examining the operational systems of companies and ensuring compliance with policies, laws and legislation
- Examining the administrative system adopted by companies
Stressing on the importance of financial auditing as a certified professional monitoring tool, Al Mansouri said: “This system will keep RERA fully informed about real estate companies and projects. Auditing and evaluation of approved real estate projects in Dubai enhances trust and transparency in the real estate sector in addition to catalyzing development and growth of Dubai.”