Overview
Special Purpose Audits are tailored audit engagements designed to address specific financial events, such as company liquidation or acquisition.
At YNI Consultants, we offer expert audit services to ensure financial transparency, stakeholder protection, and regulatory compliance during these critical transitions. Our audits provide clear, objective assessments aligned with UAE laws and international best practices.
What are Special Purpose Audits?
- Liquidation Audits: Conducted when a company winds down operations, ensuring accurate asset valuation, liability settlement, and fair distribution of proceeds.
- Acquisition Audits: Performed during mergers or acquisitions to assess financial health, detect risks, and provide valuation accuracy.
These audits serve as essential tools for informed decision-making and legal compliance during complex corporate changes.
Liquidation Audits
- Asset Valuation: Review of tangible and intangible assets for accurate liquidation value.
- Debt Settlement: Ensure liabilities are settled according to legal priorities and documentation is in order.
- Legal Compliance: Adherence to UAE Commercial Companies Law, Insolvency Law, and other relevant frameworks.
- Final Proceeds Distribution: Verify that proceeds are distributed fairly among shareholders and creditors.
- Audit Report: Comprehensive summary detailing the liquidation process and final financial position.
Importance of Liquidation Audits
- Ensure transparency and fairness in asset liquidation.
- Protect interests of creditors, shareholders, and employees.
- Avoid legal complications through full compliance.
- Provide reliable final financial reporting to stakeholders.
Acquisition Audits
- Financial Health Check: Evaluate financial statements, disclosures, and identify inaccuracies or hidden liabilities.
- Due Diligence: Verify company standing, accounting practices, off-balance-sheet items, and legal obligations.
- Risk Identification: Detect financial, operational, and compliance risks that may impact the deal.
- Operational Review: Assess business operations, IT systems, supply chain, and HR practices.
- Valuation Analysis: Validate the company’s worth and growth potential.
- Audit Report: Independent and objective report summarizing findings and highlighting risk areas and opportunities.
Importance of Acquisition Audits
- Facilitate informed and confident investment decisions.
- Mitigate financial and legal risks in advance of transaction closure.
- Ensure valuation aligns with true company performance.
- Maintain compliance with IFRS and jurisdiction-specific acquisition laws.
Key Benefits of Special Purpose Audits
- Clear Financial Insight: Transparent assessment of financial health during liquidation or acquisition.
- Risk Reduction: Identify hidden issues early to avoid future complications.
- Regulatory Compliance: Meet all legal and financial requirements under UAE law.
- Informed Decision-Making: Enable stakeholders and investors to make strategic, data-driven choices.
- Stakeholder Protection: Safeguard the interests of shareholders, creditors, and employees.
- Efficient Transitions: Ensure smooth execution of liquidation or acquisition processes.
Why Choose Us?
- Extensive Experience: Proven track record in special audits for liquidation and acquisition across industries.
- Tailored Services: Customized audits designed around your business’s unique needs.
- Comprehensive Due Diligence: Deep review to uncover risks and ensure accurate financial representation.
- Regulatory Expertise: Strong understanding of UAE liquidation and acquisition laws.
- Clear, Actionable Reports: Insightful recommendations to support your business transition strategy.
Conclusion
Special Purpose Audits—such as Liquidation and Acquisition Audits—are vital for ensuring transparency, compliance, and stakeholder confidence during major business transitions.
At YNI Consultants, we help you navigate complex financial events with confidence through our expert audit services.
