Internal Audit plays a vital role in a company’s corporate governance. It is because, with the rampant change in technology, robotic automation and changing regulations, the business cannot let risks unfold and stimulate a plethora of financial ordeals. Internal Audit is crucial when it comes to managing and mitigating any risks. Internal audits and risk assurance services are a delicate statutory requirement that require premier and expert consultation in the UAE. The businesses in the UAE require investors to invest their money, and banks leverage costs by lending money without any hassle. It forms an essential aspect of the business. Internal audit and risk assurance services provided by the Audit firms in Dubai help businesses achieve these specified business goals.
Why consider an internal audit in Dubai?
Businesses must demonstrate efficient internal controls and financial records to attract investors and obtain cheaper funding. The audit firm in Dubai and its member firm, Farah at and Co, provide internal audit services for multi companies in the UAE. Some of the reasons for considering internal audit services for your business are as follows:
- To ensure optimal consumption of resources by aligning business goals with audit compliances
- To monitor the uniform accounting practices across various operation internal business units.
- If you are looking for new investors or lending from banks or financial institutions.
- To avoid unnoticed errors in accounting and bookkeeping and rectify the same within the accounting period.
- Ensure that standard accounting practices and procedures are followed at all times.
- Prepare for a statutory audit in the near future.
Advantages of conducting an internal audit in Dubai
Internal auditing in Dubai is the basis for quantifying internal controls. An audit firm in Dubai provides you with the following benefits for conducting an internal audit.
- Effective cost control
Internal audit teams, whether within the company or outsourced, conduct periodic audits and compliance for the accounting department. It ensures that there is no slip-out on the budget.
- Identify risks.
Risk assessments help to understand if there are any gaps in the process and systems, which increase the chances of commercial and regulatory risks. An audit firm in Dubai provides risk assessment findings through its internal audit services that are beneficial for the management and stakeholders of the company.
Regulatory, statutory and legal compliance is a careful process that must be monitored regularly. Leaving compliance issues unmonitored is highly risky and leads to penalties and damage to the business’s reputation. An effective internal audit process helps mitigate such risks.
- Performance management
Internal auditors take care of the checklist of activities to be measured against their respective benchmarks. Internal Audit helps evaluate performance management of various departments and assists in process improvement and closures of any identified gaps in the process.
- Scale up the internal controls
Internal control measures help businesses to mitigate risks. However, changes in the regulations or upgradation in technology, such as updating accounting software, may require changes in the internal control policies. Internal Audit quickly identified deviations from compliance and helped scale up the business’s internal control policies.
Get to know the internal Audit process in the UAE in simple steps.
An internal audit is the Audit conducted within the organization to identify and mitigate risks before it causes any damage to the business. The external staff conducting internal audits are called internal auditors. An internal auditor can be a Certified Public Accountant or a Certified Internal Auditor who is well versed with the compliance requirements of the business. Internal Audit is carried out in the following steps:
- Planning- The scope and the objective of the internal Audit is determined. A timeline and audit period gets confirmed. Process and the departments to be included in the internal Audit are involved and notified about the internal audit execution.
- Fieldwork- The audit plan execution happens during the fieldwork phase. Various departments must comply with the internal auditors and provide the documentation for the internal audit process. The internal audit areas include:
- Financial Audit- Financial Audit includes the accounting and procurement department auditing. It includes auditing books of accounting, inventory, Fixed assets, and purchase methodologies and compliance.
- Operational Audit- Every department has its function. Operation audit ensures the operational policies and controls align with the business’s day-to-day operations.
- IT Audit- Informational technology audit ensures the software and applications used are compliant, and there are no gaps that can cause risk for the business. Internal Auditors must identify potential technology risks, and Businesses must mitigate related control measures such as data privacy, data management and digitalization risks with subject matter expert’s ad internal auditors.
- Human Resources and Payroll audit- The UAE has stringent laws that protect the employer and the employee. The internal Audit process in the UAE ensures that critical laws and regulations are implemented and followed by the HR and Payroll departments. A lapse in human resources can subject the business to heart penalties and even downgrade it as a potential workplace for talented candidates.
- Reporting-The audit report is drafted and shared with the management. The Internal auditor will provide their consultation and guidance on the findings once the audit report is finalized and distributed among the management and the board members.
- Follow up- Critical areas of improvement are highlighted in an internal audit report. Follow-up ensures that measures taken are implemented and executed by the respective department.
Internal Audit Services Provided by Audit Firm in Dubai
- Internal Audit partnering in Co-Sourcing
- Internal Audit partnering in outsourcing
- EQA or External Quality Assurance Review
- Data Analytics
- Timely audit Monitoring
- Audit and risk advisory
- Audit expertise and subject matter expertise
- Audit Advisory and risk assurance services
- Upgrading employee performance through knowledge building and on-the-job training
- Treasury audit.
Why hire an Audit firm in Dubai for your next internal Audit?
The benefits of having a third party involved in your internal Audit is
- Independent and unbiased view on the reporting
- It is similar to conducting an external audit.
- Get to partner with internal auditors who continuously work in an updated audit environment and industry standards across the UAE.
- Customized and tailored internal audit services that match your company’s requirements.
- Train your staff and share knowledge.
Internal Audit an opportunity to improve existing policies and provide added value to the business, audit firms in Dubai can help your business to achieve heights and thrive. To enhance your Internal Audit and Risk Assurance services, contact our risk specialist and internal audit experts today. We shall be happy to assist you.