Banking Sector audits, also known as financial sector audits, are considered more challenging than regular companies. After all, a bank audit implies verification and reporting of institutions responsible for setting compliance and financial advisory benchmarks in the financial market.
A bank audit in the UAE is one of the most complex audits for banks in Dubai and the UAE. Strictly adhere to the central bank's standards and regulations by implementing the latest technology to curb fraud and irregularities. Audit Firms in Dubai navigate through the evolving risks in the banking sector and provide banking sector audit services for various financial institutions across the UAE.
Audit Firms in Dubai's audit assurance team has onboarded qualified and cross-functional bank auditors who are well versed with the local laws and regulations of the UAE. Ranking as one of the top audit firms in UAE, we provide insightful internal audit and external audit services.
Our financial advisory provides banks in the UAE and global financial sector clients valuable information to fulfill the demands of the changing economic environment by providing exceptional core audit services for managing and monitoring risks enhancing security and corporate governance.
Also read: Difference Between Audit Firm and Accounting Firm
Financial statements for the banking sector are prepared based on internationally accepted accounting standards, adhering to the local laws of the UAE. central bank regulations. The implementation of VAT and new laws in the banking sector has seen drastic changes in how banking has been conducted in the UAE.
There is an extra emphasis given to risk-based audits that focus on providing a solid foundation for banks to identify and manage financial risks.
The Scope of Bank Audits in the UAE
Banks play a vital role in managing the national economy, and it is the backbone of trade that helps regulate money movement in domestic and international markets. Hence audit for the banking sector is regulated by the central bank to ensure its sound financial performance.
Evaluation of Internal Controls and Providing Consultation
Audit Firms in Dubai help their clients determine the internal and external controls that can be implemented to mitigate any risk of fraud and develop a robust framework that reduces the requirement for expanded audit procedures.
Verifying the Efficiency of the Routine Bank Operations and Accounting Routines
Routine bank operations audit ensures that the bank is performing well under the central bank's regulations in compliance with UAE laws and industry standards. Internal and external bank audits provide an independent evaluation and review of the bank's financial activities, confirming that they are accurate & legitimate.
Auditors also propose corrective actions if necessary that a bank may need to undertake.
Evaluation of the Reliability of the Bank’s Financial Records
Internal and external audit of the bank helps uncover fraud and hidden risks related to faulty operational practices, deficient policies, and violations of the law. For any financial statement to be beneficial to investors and external parties, it must be accurate.
Audit Firms in Dubai ensure that the bank's financial records are free of manipulation and misrepresentation, allowing its shareholders and external users to depend on it for their decision-making.
Banking Sector Audit Services in UAE
Almost all the banking services are now digitized. In the wake of the economic changes since 2019, there has been a sharp decline in the footfall of customers physically visiting the bank for any service. A digital banking service audit comprises but is not limited to a network security audit, Authentication audit, privacy and confidentiality audit, and access control audit.
Audit Firms in Dubai's team of expert evaluators have helped its banking sector audit clients better their internal controls for digital banking services and reduce potential fraud factors.
Also read: Difference Between Audit and Forensic Audit
Undertaking Forensic Investigation for Fraud
A team of auditors at Audit Firms in Dubai specializes in forensic accounting. They are well-trained to see beyond financial statements and conduct an in-depth investigation of data provided by the financial institution.
Forensic examination of fraud has helped our clients be court-ready by conducting a fraud audit of the financial statements.
Monitoring Non-performing Assets and Management of the Bank’s Assets
Evaluation of asset quality is a critical step in banking sector audit. A delay in recognizing Non-performing assets can cause a credit risk to the bank. Bank Audit ensures that the asset quality audit discloses the bank N.P.A.s and their potential risks. Higher risks with N.P.A. are directly related to lower quality of the loan recovery and a higher influx of capital.
A banking sector audit service in the UAE works around the robust framework of guidelines provided by the Central Bank that ensures the standard of the bank's asset quality is up to the mark. An audit, in this case, further enhances the bank's credibility and reputation in the financial sector domain.
Conclusion
Audit Firms in Dubai have worked with executives, managers, and board members of some of the central banks in the UAE. We assist with audits and outsourced staff to meet the banking sector's finance function requirements.
Our qualified accountants and CPAs are experts in managing accounting issues and provide financial advisory by assessing fraud risks and any financial irregularities contact us.
Kasun Liyanage is an Audit Manager with over 7 years of experience dealing with diversified corporate clients. He not only manages the team’s work schedule but also is an expert in handling audit areas such as external audits and fraud investigation, Internal control benchmarking and best practices and well as preparation of financial statements and IFRS compliance.
