It’s a common question that is asked, especially by those looking to venture into auditing as a career. According to a recent report, UAE was among the fastest-growing economies in 2019, so auditing is among the most demanding professions in the UAE. This is because as the economy grows, so do auditing job opportunities.
The question of how much an auditor in the UAE stands to earn requires a very comprehensive answer. Well, in this post, we will be taking a more in-depth look at the starting salary of an auditor in the UAE, how much you can make as a freelance auditor in the UAE, and factors that affect an auditor’s salary pricing, among other things that will help you kick start your career as a professional freelance auditor in the UAE. So let’s get started, shall we?
What is the starting salary of an auditor in the UAE?
According to most survey websites we mentioned earlier, an auditor’s average starting monthly salary in the UAE is approximately 6000AED and an annual salary of about 57000AED.
While there are four types of auditors; external, internal, forensic, and government auditors, this post will focus on the cost of hiring the two most common auditors
How Much Do External Auditors Charge in the UAE?
According to salary explorer, freelance auditor salary average monthly salary in Dubai is 22,500 AED, the lowest being 10,600 AED, and the highest being 35600 AED. Of course, this depends on factors like skills, location, and experience, to name a few.
This type of auditor has no affiliation with an organization. Some of their roles include;
- Conducting audits according to the regulatory norms
- Conducting an unbiased opinion and presenting an independent report on the financial statements of a company
How Much Do Internal Auditors Charge in the UAE?
An internal auditor examines matters of an organization’s practices and risks. According to Payscale, the average yearly salary of an internal auditor in the UAE is 107,740 AED.
While most people mention that internal auditors tend to earn more than external auditors, many factors determine which type of auditing is more lucrative than the other.
Let’s take a look at some factors that affect a freelance auditor’s salary.
Factors that affect a freelance auditor’s salary
1. Academic qualifications and experience
Unlike most freelance careers in the UAE, you need to have some formal training to become a professional freelance auditor in the UAE. Some of the qualifications needed include;
- A bachelor’s degree in accounting, finance, or business administration
- Some clients or companies may require you to have a master’s degree in either of the above fields
- Some firms also may require you to have specific qualifications like CPA, ACA, and ACCA
Although most people argue that you can become an auditor with no prior experience, it is essential to have some level of experience, especially if you want to become a freelance auditor. This is because it builds your portfolio, enabling you to ask for a higher freelance auditor salary.
According to Payscale:
● An auditor with less than a year of experience can earn an average salary of 57000AED annually
● An auditor with between 1 and 4 years of experience is likely to earn an average salary of 71180AED annually.
● An auditor with between 5 and 9 years of experience can earn an average salary of 125020AED.
So, the more experience, the better the salary.
Branding in freelancing always comes down to two questions; how well do people know you? And how well do you stand in this huge crowd of freelancer auditors? Investing more in your personal brand plays a critical role in your success as a freelance auditor in the UAE. This is because it makes your professional identity and skills unique, giving you an edge over thousands of other freelance auditors, meaning that you can earn more and build your career.
3. Role of an auditor
The role of the auditor also determines the cost of hiring an auditor in the UAE. Some of the roles of an auditor include:
- Ensuring that the organization complies with tax rules and regulations
- Detecting fraud in the company
- Preparing commentaries, reports, and financial statements of an organization
- Checking and ensuring that an organization’s records are accurate and reliable
- Determining the levels of financial risks of an organization
4. Tax Deductions
In most countries globally, freelancing is not regulated by the government, which means freelancers are not taxed. However, that is not the case in the UAE. The UAE’s government recently implemented a taxation policy in a bit to regulate the freelancing business. This resulted in the deduction of Value Added Tax(VAT) on freelancers’ income, including freelance auditors.
The government divided these tax deductions into three categories:
- Any freelancer who earns less than 187500AED annually is not liable to register and pay VAT
- Any freelancer who earns between 187500AED and 375000AED annually may choose or not to register and pay VAT
- Any freelancer who earns more than 375000AED annually must register and pay VAT
Of course, all these earnings must be backed up by credible records.
Not many freelancers are for the idea of VAT tax being imposed on them. However, you will be surprised to know that many benefits come with paying taxes. Among these benefits include:
5. A client will trust you more
Trust plays a vital role in a client-auditor freelancer relationship. When you pay your taxes, clients will be more willing to do business with you.
6. Having the ability to levy a tax
Registering to pay taxes as a freelance auditor in the UAE gives you the ability to levy your clients’ taxes. This means that it is collected from the client and paid directly to the government, therefore lifting that burden off of you.
Most freelancers do not realize that the UAE government deducts tax only from the profits they make. So, it won’t significantly affect your income.
Like every other freelancing career, auditing has a lot of competition. So you have to make sure that you stand out and attract potential clients. One of the ways of doing so is by investing in your brand. You should also do research and see how much other freelance auditors are charging. This will help you draft your own pricing strategy to not charge too high or too low.
8. Freelance Auditors
Freelance External auditors can only be hired by Registered Auditing Firms in the UAE. However, Internal auditors can be hired by businesses as well.
As a freelance auditor, the tasks you choose to work on will greatly impact your overall potential income. So it’s essential to set specific and personal strategies and goals that will help you grow your income and build your career.
One of the ways of achieving your target income is by picking tasks that are within your capability. Some tasks may be too complicated for you to handle, especially if you are an entry-level freelance auditor. So you need to do tasks that you can handle comfortably and quickly. This will enable you to handle more jobs, which will ultimately boost your income.
9. Time efficiency
It’s one thing to identify and set income goals, but it’s a totally different thing to find the time to meet these goals. Time management is one of the many qualities that a good freelance auditor should possess. Since you work without any supervision, it’s important to manage your time well enough to be able to meet your income goals.
Try and identify your hourly income goal then plan on how you will spend your time bidding for clients and working on tasks.
Let’s take a look at some of the frequently asked questions about freelance auditing in the UAE.
How much do auditors make in an hour?
According to salary explorer, an external auditor in Dubai earns an average hourly wage of about 130AED, while an internal auditor in Abu Dhabi makes an average of approximately 110AED.
Do auditors get paid well?
As we mentioned before, UAE’s economy is growing rapidly, meaning an increase in freelance auditors’ demand. While auditors in the UAE do get paid well, many factors determine the salary you will be earning. Factors like your academic qualifications, the level of your experience, and your brand, to mention a few.
It’s no doubt that there are a lot of job opportunities for freelance auditors in the UAE. However, your potential income solemnly depends on whether you are an entry-level freelance auditor or have been in this field for quite some time. Note, identifying your income goals and drafting strategies for achieving them is vital for your success as a freelance auditor in the UAE. Fortunately, many great platforms can help you find clients while interacting with other freelance auditors, therefore building your career. Lastly, if you are a freelance auditor looking for work or a client looking for qualified freelance auditors, Bawabba is the website to check.