Internal audits are very important to evaluate and enhance the efficiency of a company’s internal control systems, and governance structure.
Especially in the UAE, where compliance with rules and regulations is fundamental, internal audits lead as an essential tool for financial transparency, reducing risks, and detecting areas for development.
Also read: Internal Audit of a Manufacturing Company
An internal Audit Checklist is like a tool to check the health of your company. It offers an impartial picture of how things are working.
The key steps to include in the Internal Audit Checklist for a Company are;
Audits make employees feel like they are being observed and inspected. The first step of the Internal Audit Checklist for a Company is to provide reasoning for your audit. You have to clearly state the audit standards, and principles and define the scope. The major reasons to conduct an internal audit of a company are;
There may be several reasons but it is important to show it and make it clear so there will not be any ambiguity for anyone.
A risk assessment is a fundamental tool for several reasons. It helps to identify areas of concern that facing your organization and determine what you have to do to address them. You have to reduce risks that could affect;
After identifying all the risks, you can have an opportune time to make a faithful plan for treating them. Consider the probability of each risk and rank them from 1 to 10. Now that each risk has a higher probability or impact score, you have put extra effort into those risks to reduce them.
The next key step of the internal audit checklist for a company is Initial Audit Planning. Internal audit has to begin with a clear vision of why a given project is part of the internal audit plan. In this phase several questions may arise that should be answered and approved such as;
All members of the project have to analyze the audit report and audit results to revive their understanding of the situation, scope, and project limits.
Also read: Audit Criteria In Internal Audit
The next important step of the Internal Audit Checklist is to get the Initial Document Request List. It is also known as the Evidence Request List. It is one of the dominant and key documents of any audit. The Request List covers everything from;
Requesting and then finding documentation on how procedures work is a fundamental step in making an audit. These requests should be delivered to investors as soon as possible. As requests pull in, the internal audit team evaluates all documented evidence for any continuations. Some valid and important requests and key reports are;
Auditors can make comprehensive sampling choices to test whether those processes are being executed effectively.
The fieldwork stage is an important phase of the Internal Audit Checklist. In this, you examine in-depth the organization's controls and procedures. It enables us to see;
This step checks how well controls are running. It spots any areas of concern that need to be improved. It is very important to keep an open and fair record of what you find.
After the completion of fieldwork, it is time to look closer at your findings. Search for any signs that lead your company to big trouble. Put organized recommendations and suggestions. After that report all the findings that should be practical, affordable, and in line with rules.
Internal Audit Checklist for a company in the UAE needs careful obedience to wide-ranging regulatory compliance, risk management, and working competence. Internal audits are a very important and helpful tool for several reasons.it includes transparency, strong governance, and allowing maintainable growth.
If you are looking for the top Auditing Firms in Dubai Farahat & Co is one of the best in the UAE. The proficient team helps conduct audits, and so companies can guarantee compliance with local regulations.
The internal audit checklist is:
The main 5 C’s of Internal audit reports are;
Theshani is a Senior auditor and has experience of 4+ years in providing audit assurance and advisory services to a wide range of industry clients. She continues to stay on top of ever-changing industry dynamics by continuously learning and developing expertise.