Strata Audit Services
in Dubai

It is an independent examination of financial records for a jointly owned property, including service charge income, shared expenditure, reserve activity and owner balances. Dubai’s current framework is governed by Law No. 6 of 2019.

Audit and review requirements depend on the property, reporting purpose and applicable RERA or Mollak process. The Management Entity cannot collect service charges unless they have been approved by RERA.

Auditor acceptance should be checked through Mollak’s Auditor Companies facility or confirmed with RERA before appointment. A registration held for another Dubai authority does not automatically establish Mollak eligibility.

The appointment may be coordinated by the Management Entity, developer or responsible governance body, subject to the Jointly Owned Property Declaration and RERA requirements. The engagement letter must identify the audited property and period.

Core records include the general ledger, owner ledger, bank statements, approved budgets, invoices, contracts, payment support, tender files and reserve schedules. Missing third-party evidence can restrict the audit opinion.

Collections are reconciled to unit billings, receipts, bank deposits and ledger balances. Expenditure samples are then checked against the RERA-approved budget, supplier evidence and the period in which services were received.

The operating fund covers recurring costs for managing, maintaining and operating common areas. Typical categories include security, cleaning, utilities, insurance and routine maintenance.

The reserve fund is intended for major repair and replacement of common property components rather than recurring daily costs. Contributions and withdrawals should be separately identifiable in the accounting records.

“Sinking fund” is commonly used for what Dubai’s jointly owned property framework generally calls the reserve fund. The audit checks the terminology and classification used in the property’s approved records.

No. The auditor examines records and reports findings, while RERA controls service charge approval through the applicable process. An audit report does not itself authorise collection from owners.

Mollak is the Dubai Land Department system used to regulate jointly owned property service charges and related accounts. It also provides service charge information and lists approved management and auditor companies.

Dubai Land Department’s service charge approval page requires proposals and evaluations of at least three tenders for each service provider. The audit checks whether this evidence is available and consistent with the selected contract.

Yes. The arrears schedule is reconciled by unit to invoices, receipts, credits and the general ledger, with disputed or unallocated amounts shown separately where records allow.

The auditor examines selected maintenance, management, insurance, utility and other service contracts. Dubai Land Department lists these contracts among the documents required for service charge approval.

Yes, when they form part of the building expenditure. The audit checks the contractual basis, approved budget amount, calculation method and any relationship between the manager and service provider.

Costs shared across buildings, phases or mixed-use components must follow a documented allocation basis. The auditor tests whether that basis was applied consistently and agrees with available approvals and property records.

Timing is fixed after reviewing unit count, transaction volume, bank accounts, reporting periods and record completeness. Delayed confirmations, missing invoices or unreconciled opening balances extend fieldwork and reporting.

The fee is based on the number of properties and periods, transaction volume, owner accounts, funds, bank accounts and required Mollak or RERA deliverables. A written quote follows the initial records assessment.

Management may provide valid alternative evidence, such as contracts, completion certificates and independent confirmations. If sufficient appropriate evidence remains unavailable, ISA may require a qualified opinion or disclaimer, depending on materiality and pervasiveness.

Correctable errors are reported to management through proposed adjustments. Material uncorrected misstatements affect the audit opinion; control failures are normally addressed separately in the management letter.

An ISA financial audit provides reasonable, not absolute, assurance and is not designed to guarantee that every fraud is found. Specific suspicions may require a separate forensic investigation with an evidence-preservation scope.

Distribution follows the engagement terms, governing property documents and applicable RERA requirements. The report identifies its intended users, while confidential supporting records remain subject to access controls.

Financial audit, budget review and regulatory submission are distinct deliverables. The Dubai Land Department service allows service and usage charge approval applications through Mollak, but final approval remains with the authority.

Where agreed, management receives a separate findings report covering reconciliation differences, unsupported costs, procurement weaknesses and control gaps. Management responses and target actions are recorded independently from the audit opinion.

Yes. The engagement must state each reporting period, and opening balances may require additional procedures when the previous year was unaudited or supporting records are incomplete.

Usually not. A property management company audit covers the company as a reporting entity, while a strata audit isolates the income, expenditure, funds and owner balances of a specified jointly owned property.