RAKEZ Audit Readiness and Compliance

Where RAKEZ company records usually go wrong

Manufacturing and trading under RAKEZ licences

A RAKEZ company may run a factory, a trading desk or a warehouse, sometimes all three. The accounting needs to separate them. Use cost centres or departments so factory costs, trading margins and warehouse expenses can each be reviewed without a manual split at year-end.

Where one site serves several activities, record the basis for sharing utilities, rent and supervisor salaries, and use the same basis every month. A reviewer is more interested in consistency and documentation than in a perfect formula.

Purchase to payment controls

For industrial buyers, the three-way match is the core control. The purchase order, the goods received note and the supplier invoice must agree before payment is released. Keep the matched set together and file it by supplier.

Review supplier statements monthly and compare them to your payable balance. Differences usually come from timing, disputed items or missing credit notes, and each is simple to clear if caught early. If a supplier invoice arrives before the goods, hold it as unmatched and do not pay it until the receipt note is on file.

Preparing the year-end stock and asset pack

Industrial year-ends depend on physical evidence. Collect these items in the final fortnight so that valuation and balances can be completed without delay. A short cover sheet listing each item and who prepared it speeds up review.

• Stock count sheets signed by two people, with variance explanations.
• Raw material, work in progress and finished goods valuation schedules.
• A register of machinery with additions, disposals and depreciation.
• A list of orders placed but not received at year-end.
• Customer and supplier balance confirmations for the largest accounts.

Records that should be on file

• Licence, lease and shareholder documents
• Revenue analysis split by qualifying and non-qualifying income
• Bank reconciliations at year-end
• Contracts supporting major income and cost items
• Fixed asset register and depreciation workings
• Evidence of staff, premises and decision-making in the UAE

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