Internal Audit Checklist for UAE Enterprises 2025

In today’s fast-paced business landscape, internal auditing in the UAE is essential for ensuring compliance, addressing operational challenges, and safeguarding the financial integrity of a business. It supports organizations of all sizes—whether mainland or Free Zone entities—by helping establish stable internal controls and maintaining transparency. UAE Internal auditing also assures that internal controls, regulatory compliance, and business performance systems are functioning effectively.

To strengthen the internal control framework, auditors in the UAE must have an easy-to-follow UAE internal auditing checklist customized to meet the regulatory requirements in the UAE. In this blog, we will dive into an essential internal auditing checklist in the UAE.

Master Internal Audits with This UAE-Focused Checklist

For businesses in the UAE, maintaining transparency is crucial, and internal audits help achieve this. Many firms turn to external auditing services, especially when internal resources are limited. A well-defined internal audit checklist in the UAE will guarantee that all critical areas are reviewed. Here are the key components to focus on:

1. The Scope of the Internal Audit

 Determining the scope of the UAE internal audit is essential. The scope of the UAE internal audit is designed to identify the key processes, compliance requirements, and risks within the business process. A well-defined audit scope ensures audits are conducted with purpose, delivering actionable insights aligned with strategic goals.

2. Collecting the Right Documents for UAE Internal Audit

Accurate documentation is the foundation of a successful internal audit. Collecting important documents related to the finances and operations is an integral part of an internal audit in the UAE. To facilitate internal auditing, the business must maintain organized financial records, communicate with auditors, and address  discrepancies as they arise.

Ensure you provide the following to your auditor:

• Bank statements
• Invoices and bills
• Payroll and employee records
• General ledger & trial balance
• Fixed asset register
• Loan agreements
• Any business-related legal documentation

Get in touch with a trusted audit firm in the UAE, like Jaxa, and you gain more than compliance with confidence.

3. Reviewing Internal Control

An effective internal control environment is integral to uphold financial integrity, safeguard assets in business, promote accurate financial reporting, and reduce the risk of loss while maintaining UAE compliance.  Auditors in the UAE identify inadequacies that could affect the continuity of operations or the reliability of financial information. Leverage trusted, audited expertise from JAXA Auditors, Dubai, UAE, effectively keeps your business compliant, secure, and financially sound.

4. Adhering to the UAE’s Legal and Regulatory Compliance

Complying with UAE regulations is crucial for businesses to maintain smooth operation and steer clear of penalties in the UAE. A structured internal audit checklist in the UAE may consist of the following compliance requirements:

• Are all Tax filings and payments in accordance with UAE FTA regulations?
• Are internal processes aligned with the UAE’s UBO and AML compliance mandates?
• Have all required business licenses, registrations, and permits been renewed on time?
• Do we have a checklist for internal audits that’s based on UAE laws and regulations?
• Did we renew all our business licenses, registrations, and permits when we were supposed to?

5. Risk Management Assessment

Risk is a part of every business. Having a solid risk management system helps protect the company’s image. The UAE internal audit checklist should look at how the company identifies, addresses, and monitors risk within an organization, specifically considering:

• Does the company have a documented internal control framework in place?
• Are risk registers maintained and regularly updated?
• Are risk mitigation plans documented and aligned with the level of risk exposure?
• Is there a process for monitoring, reporting, and improving internal controls over time?
• Are UAE crisis management protocols clearly defined and communicated to key personnel?

6. Ensuring Financial Transparency

Examining financial statements is a key component of internal audit in the UAE. Auditors evaluate financial records to ensure they are accurate, reliable, and in compliance with UAE accounting standards, helping stakeholders and partners make informed, data-driven decisions.

• Is the financial audit report prepared in compliance with IFRS and UAE accounting standards?
• Are tax returns filed on time with the UAE Federal Tax Authority (FTA)?
• Are tax records and supporting documents retained for 7 years as per UAE tax compliance?
• Are periodic bank reconciliations conducted and documented?

7. IT controls evaluation

In a technology-driven business environment, strong IT control protocols are paramount for every business. As a part of internal audit services in the UAE, auditors examine the IT control framework to ensure data security, support business continuity, and adhere to UAE cyber control protocols. The internal audit checklist in the UAE for evaluating IT controls is:

• Does the organization have documented data protection and privacy policies?
• Are backup procedures consistent and tested periodically?
• Is the cybersecurity policy compliant with UAE regulatory standards?
• Are firewalls, antivirus, and anti-malware protection updated regularly?

8. Assessing Operational Health Check

Through an operational health check, businesses can assess how well- efficient internal procedures are working. To find inefficiencies, optimize processes, and make sure resources are being used to their best potential, the internal auditor in the UAE must assess operational efficiency. For a meaningful evaluation of operational performance, internal auditors in the UAE must consider several foundational areas:-

• Is the company’s organizational structure clearly defined and documented?
• Are internal audits conducted regularly, and are findings addressed?
• Are key performance indicators (KPIs) clearly defined and monitored?
• Are core business processes (procurement, production, sales) documented and standardized?

Strategic Value of Internal Audit Checklists in Dubai

A well-crafted internal audit checklist the in UAE provides a multitude of benefits to auditors and businesses, such as:-

• Serves as a roadmap for auditors to quickly prioritize and schedule audits effectively.
• Fosters clear, accountable communication across the audit process.
• Presents a measurable indicator for audit quality and compliance outcome.
• Ensures every audit follows the same high standards.
• Acts as a reference guide throughout the audit process.
• Lay the groundwork for efficient audits, outline the scope, plan resources, and manage audit timelines.
• Strengthens stakeholder assurance with clear proof of evidence.
• Tracks audit efficiency and effectiveness.

Smart Ways to Use Your Internal Audit Checklist  in the UAE

• Schedule a routine internal audit check in the UAE to detect and resolve risks early.
• Document audit findings, actions, and outcomes to ensure accountability.
• Automate audits and track results in real time.
• Streamline internal audits with automation and real-time tracking adhering to UAE auditing standards.
• Outsource internal auditing service to certified auditors in the UAE.

Unlocking Power with Internal Auditing Service in UAE

As a leading and trusted auditing and accounting company in the UAE and UAE FTA certified tax agent, Jaxa Chartered Accountants delivers reliable auditing services to businesses of all sizes whether startups or multinational entities. Our certified FTA auditors in UAE having 18+ years of experience serving diverse clientele stay ahead of evolving compliance requirements while driving smarter financial decisions.

Our deliverables

• Seasoned audit professionals have a strong grip on evolving UAE mandates.
• 100% Guaranteed UAE auditing and tax compliance
• UAE FTA-certified auditors
• Budget-friendly audit service

If you are looking for the best audit and assurance firm in the UAE providing the trusted internal audit service in Dubai, UAE, Jaxa Auditors is here to guide you. Stay audit ready  – and compliant with our tailored internal audit checklist in the UAE.

Speak to Jaxa Auditors for availing the best audit and accounting service the  in UAE.