What is the process of Internal Auditing in Dubai?

Internal audit is an independent consultation activity which is aimed at improving the performance of the organization. This process of internal auditing mainly aids businesses in the UAE to easily achieve their business objectives via a systematic approach that evaluates the operations, and this improves its efficiency. This in turn leads to better risk management, operations and governance process.

The reports generated after conducting internal audit helps the company as well as decision makers to identify those areas which need corrections, innovation or even a major overhaul. An auditor not only reviews finance and IT but is also responsible to review the supply-chain, and ethical conduct of the company.

Importance of Internal Auditing

One of the main functions of an internal audit is to provide assurance to the company from an outsider’s perspective with respect to the risk management, governance and internal control processes and that they are functioning effectively. It also designed specially to help enhance the business exercises and ensure it reaches its maturity. Inter audit also helps to gain insight regarding the company culture, policies and procedures and enables the board of directors and company management to identify the internal controls.

Dubai is a global city, with a promising commercial and trading hub, due to which it is also a preferred choice for entrepreneurs and investors from across the globe. In the last few years, the number of audit firms have increased manifold especially due to some mandatory rules with respect to business formation and taxes laid down by the government. Therefore, internal audit can be very useful for an organization to identify any errors. Some of the other ways in which internal audit can help an organization include:

Helps in the verification of company assets while also making recommendations for accurate security measures that should be adopted.

Helps in computing the compliance policy of the firm with respect to policies and procedures of audit.

It reviews the operations in order to evaluate the results and ensure that they match the objectives as planned and also if the operations are being conducted according to the road map.

It checks all the company records to check for any kind of theft, misconduct or fraud.

 Benefits of having a strong internal audit system

Helps in safeguarding the assets

Helps to reduce all kinds of frauds

Helps to increase the financial integrity and reliability

Helps to enhance the efficiency of business operations

Helps to ensure that the company is in compliance with all the laws and regulations

 Understanding the Role of Internal Auditor

One of the main roles that Audit Services in Dubai play is to provide management to companies along with independent assurance on the association's interior controls, risk management strategies and governance and whether they are working effectively. Their capacities are to administer, assess, investigate and analyze the risks as well as controls, check and guarantee data and compliance with procedures, policies and laws. An internal auditor additionally surveys the accomplishment of objectives and targets as set by senior management. On the off chance that the objectives have not been satisfied, the internal auditor recognizes the procedural gaps and makes proposals for improvements.

Operational exercises: An Internal audit in Dubai assesses the procedure of the organization by conducting interviews with departmental representatives, accounting and bookkeeping administrators, risk specialists and external auditor. The working condition of an organization portrays the administration's morals and ethics, leadership style, and strategic approaches. The auditor can likewise take a look at ongoing industry patterns and the guidelines to decide the association's operational proficiency.

Review controls: An internal auditor in Dubai surveys audit reports from an earlier time or working papers and decides how the internal control framework works. They likewise ask about the representatives who influence the control framework and check the sufficiency of the internal control framework. A certified auditor applies their expertise to identify strategies and procedures to construct controls.

Testing controls: An audit tests an association's controls, its strategies, policies and methodology to guarantee that such controls are completely planned and have been working successfully. The firm ought to have a control framework to give point by point rules and guidelines to ensure a better decision-making process. 

Maintenance of account balance:  Internal auditor looks at account balances to decide whether the statements are in-line with the guidelines and mandates. They additionally test account balances to check the status of financial reports. A total report ought to incorporate a balance report, profit and loss account, cash-flow statement and an announcement of the investor's equity. These details are utilized to identify if the report has any misstatements.

  What are the Internal Audit procedures?

Defining the Scope of Internal Audit and drafting the Risk Assessment Matrix: Risk Assessment Matrix (RAM) is utilized to characterize the classification of risk of each procedure and sub-process under the review of audit. The degree of risk is characterized, considering about the likelihood against the classification. 

Risk-based Internal Audit Plan: A point by point Audit plan will be drafted after conversation with the administration and areas to be prioritized relying on the risk category. Some of the finance areas which need to be covered include:

1.Statutory Compliance

2.Fixed Assets

3.Revenue

4.Procurement of Goods/Services

5.Inventory

6.Logistics

7.Finance

8.Admin

9.General Operations

Execution of the Internal Audit Plan: Upon the approval of the audit plan, fieldwork has to be executed through different methodologies such as interview, walk-throughs and inquiry. Clients are also informed about the on-going audit process and the status. 

Draft Submission: After the execution stage, the observations are compiled to prepare a report. The risk rating is allotted to the observations which are made. It then becomes the responsibility of the concerned function. The report is then discussed with authorized officials, management and the board to highlight all the concerns, discrepancies and issues. 

Final report submission: Being a continuous process, after the draft submission, an ATR is (Action Taken Report) presented to the management to define the status of the observations and for a final closure. In case of any observations which are critical, they are bought to immediate attention for further action.

 Hence if you wish to improve the efficiency and the effectiveness of the company, then internal audit services in Dubai is a must. We provide audit services to our clients, to learn more contact us today. https://brooksme.com/contact-us/