What is Internal Auditing?
This is the job of professionals who are often part of a separate, independent departmental unit. They have a deep understanding of the organization’s business culture, systems, processes, and procedures. Audits can be performed to verify that the policies of management are being followed, that adequate controls are in place to reduce risk of non-compliance to established standards or regulations and fraud, and to ensure that unit performance and performance are not compromised.
What are the benefits of internal auditing for an organization?
The role of the internal auditor is to make recommendations for improvements in areas that are lacking or where there are opportunities. Management is responsible for the effectiveness and efficiency of internal controls. However, the internal audit activity gives assurance to the management and statutory audit committee. The Director is responsible for leading the internal audit activity. He or she determines the report’s scope, authority, independence, and limits. A strong internal audit activity can also provide assurance to other stakeholders, such as employees, regulators, financial partners, grant organisations, donors, and financial partners.
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How can I find out if I will be audited?
The Director develops an annual audit plan for review by senior management as well as the Board of Trustees. An annual plan will outline activities that must be completed each calendar year for financial and government requirements. Other activities are chosen randomly and rotated based on risk factors, significant changes in operations, time since the last audit review, or as requested and requested by leaders and administrative staff. If and when an audit will be initiated, the Director will inform the department and arrange meetings with staff and administrators to discuss the scope and objectives of the audit.
What is the average time it takes to audit?
The audit process such as a real estate audit usually takes six months and is often completed in a matter of weeks. The time frame is hard to predict as it depends on the scope of the tax audit and the consideration of any records, systems or personnel access that might be involved. The department will be able to discuss the findings and make comments after the audit report has been completed.
What if I’m not being audited but need assistance from Internal Audit?
Definitely! Internal controls and procedures are designed to reduce risk. It is best to develop and implement management controls early in order to save money and make the best use of your resources. Auditors do not want to audit dysfunctional systems. Their role is to give guidance and make recommendations.
What are internal controls?
The policies and procedures that are used to enforce management directives are called internal control activities. Controls are necessary actions that are taken to reduce risk and achieve the objectives. They usually include two elements:
- A policy setting out what should be done,
2. Procedures that affect the implementation of that policy.
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How can Internal Audit keep its independence and objectivity?
Internal Auditors must adhere to the professional ethics established by their professional associations. They also have to follow the Institute of Internal Auditors’ standards of professional practice. Auditors are trained in their specific field. Professional credentials do not follow the organization, but the auditor. They take their professional reputations and integrity very seriously. Independent thinking is possible because the finance auditing department works independently and is rarely part of the same group.
What is Enterprise Risk Management? And what role does internal auditing play in it?
Enterprise Risk Management (ERM), is a process that an entity’s board, management, or other personnel authorizes to review a company’s business strategy across the enterprise to identify potential events which could adversely impact the entire entity. The identification leads to the development of methods to manage business risk within a framework that is within an entity’s risk tolerance. This gives reasonable assurance that contingencies and remedies will be in place to allow the entity to reach its primary objectives and fulfill its mission.
What Role Does Internal Auditing Play In Investigating, Detecting and Preventing Fraud?
Employees, managers and auditors need to be alert for “red flags” to help them monitor the situation and take corrective actions if necessary. Internal auditors can identify suspicious behavior and help to determine the cause. They can also use financial analysis, observation, or other methods to evaluate and test weaknesses in existing controls.
Who Regulates Auditors Within The UAE?
The Dubai Financial Services Authority (DFSA) has registered Recognised Auditors. They may be appointed to examine and report on accounts of regulated DIFC entities.
Are Audits Compulsory in the UAE?
It is required to have the books of accounts audited each year, according to the Law. Every company that is registered under the law must have its accounts audited starting 1 July 2017.
Do UAE’s IFRS Regulations Apply?
Yes. IFRS Standards are required by the UAE Commercial Companies Law No 2 (2015) and the listing rules for NASDAQ Dubai, Dubai Financial Services Authority and Dubai Financial Market PJSC.
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Umapathy Anuruthan, is a Senior Auditor at the firm, holds a Business Management Degree and carries with him an experience of 6+ Years, having worked in two of the Big 4 audit firms. He has a ‘hands-on’ understanding of external audits and financial reporting and is well-known for his approach to ensuring the highest quality and accuracy in audits for clients of numerous industries.