Free Zone Audits: What Companies Usually Get Wrong (and How to Fix It)

If you operate in a free zone, you already know: audit submission is often part of annual compliance. The problem is that companies treat the audit like a document to “get done,” instead of a process that depends on clean accounting.

Deadlines vary—don’t assume

Different authorities have different expectations and timelines. Examples commonly cited include requirements like “within 90 days of year-end” or specific annual dates such as March 31 for certain zones (rules can change, so always confirm with your authority).

The 6 most common audit blockers

1. Bank recs not done monthly

2. Missing supporting invoices for key expenses

3. Revenue booked without contracts/agreements

4. VAT returns not reconciling to accounts

5. Fixed assets not tracked properly

6. Shareholder/related-party balances unclear

Quick fix checklist (do this before the audit starts)

• Close all months (not just year-end)

• Reconcile VAT control accounts

• Prepare a fixed asset schedule

• Confirm intercompany balances

• Organize contracts + major invoices