Audit Readiness and Internal Controls for Marine Companies in UAE

What slows down a marine company year-end

• Vessel assets and dry-docking. Vessel cost, major refit and dry-dock spend need separate treatment and a clear depreciation basis.
• Voyage and charter costing. Port charges, bunkers and crew costs must be attributed to the voyage or contract that caused them.
• Foreign currency balances. Revaluation of USD and other currency balances should be done consistently each period.
• Port agent accounts. Agent disbursements and recharges often stay open long after the service ends.

Vessel records and voyage-level accounting

For a company that operates or services vessels, the vessel is the natural unit for tracking cost. Keep a file per vessel holding the registration, ownership or charter documents, insurance cover, class and survey certificates and the dates on which each expires. Expenses such as fuel, crew, port dues, repairs and agency fees should carry a vessel code and, where relevant, a voyage or charter code.

Keep a certificate tracker with the expiry date of every class, safety and insurance document. A lapsed certificate can stop a vessel from trading and delay a charter payment.

Charter hire, demurrage and disputed items

Charter hire invoices should agree to the signed charter party, with off-hire periods and bunker adjustments supported by the master's reports. Demurrage and despatch claims are often settled months after the voyage. List open claims with the amount, the counterparty, the basis of calculation and your view of how likely they are to be collected.

Repair and dry-docking costs need a decision on whether they restore the vessel's condition or extend its life. Keep the yard quotation, the variation orders and the final invoice together, and list the work done so the treatment can be explained.

Evidence reviewers usually request

• Vessel register with ownership documents and values
• Voyage or charter files with revenue and cost
• Port agent statements and disbursement accounts
• Crew payroll and WPS records
• Foreign currency revaluation workings
• Insurance policies and claim records

Our scope, stated plainly

What slows down a marine company year-end

• Vessel assets and dry-docking. Vessel cost, major refit and dry-dock spend need separate treatment and a clear depreciation basis.
• Voyage and charter costing. Port charges, bunkers and crew costs must be attributed to the voyage or contract that caused them.
• Foreign currency balances. Revaluation of USD and other currency balances should be done consistently each period.
• Port agent accounts. Agent disbursements and recharges often stay open long after the service ends.

Evidence reviewers usually request

• Vessel register with ownership documents and values
• Voyage or charter files with revenue and cost
• Port agent statements and disbursement accounts
• Crew payroll and WPS records
• Foreign currency revaluation workings
• Insurance policies and claim records

Our scope, stated plainly