Auditing is providing comfort over the accuracy of management accounts or unrolling systematic errors occurring throughout the year. At the end of the year, an audit is critical to decision making for an organization placing reliability on management information (Read the need of internal audit). The whole process through which an audit is undertaken challenges. The strength of the process internal controls an organization has in place, providing an external perspective and feedback.
How to Avoid Internal Audit Blunders?
Internal Auditors in Dubai make several common mistakes.
Following are the guidelines to repel internal audit errors.
Add Value is Must
Many auditors sometimes do not analyze the actual root cause of the whole problem. Ensure that you do not spend valuable time micromanaging the entire process when you are working with your audit team. It is not crucial to spend all your time in micromanagement process. Adopt an efficient workflow and follow that.
Engagement planning is a vital part of the audit.
If the auditee knows the control is not efficient, then the auditor should not be performing audit work.
An Alternative indicates that a consulting engagement process should take the position to help management get to the root cause. Outlining a path from the beginning will ensure weather your time is spent in the right way or not. This focuses on providing a consulting engagement to help senior management find the root of the problem.
Sustain the Picture in Mind
Escalate the efficiency and effectiveness of your documentation and also the reporting to the audit committee. Restrict yourself for hunting numbers. Instead of that report up-to-date numbers to your audit committee quickly. Create reports and dashboards that automatically update. This will help you focus on the root cause analysis.
Elimination of Stress for Massive Audit Reports
Executives generally don't have time to read the length of the novel. Spend time working on a real-time, executive-level dashboard that presents key metrics and processes. Expand visibility across your organization and make your reports simpler to manage.
Worry About Scope Creep
When something unexpected happens, have a plan in place before something is forced on the situation. So that you and your team will know how to solve the matter smoothly and efficiently.
At a time when your process and controls are under pressure, be sure to refrain these top internal audit mistakes.
Importance of an Audit System to Companies
Enables the tracking of Business Objectives
Having an effective audit system is vital for a company because it allows it to pursue and attain its different corporate aims.
Business processes demand a variety of internal control to increase supervision and monitoring, detect and prevent irregular transactions, measure ongoing performance, to maintain records and to improve productivity.
Controlling on Cost
The Capital cost is essential for every company irrespective of the size. Cost of Capital is comprised of the risk along with an investment, and if an investment has more chance, an investor will need a higher rate of return to invest.
Fraud Detection and Prevention
In fraud prevention, Internal Audit plays an essential role. Analysis of the company's maintaining and company's operations system of internal controls can detect and prevent other accounting irregularities and different kind of fraud.
The certainty of where Your Company is Going
A professional conducted financial audit, you will have much more information about which parts of your business and are going smoothly and which ones demand a bit tightening up. For the areas that reflect no mistakes, you can be quite sure that you will need to do any further calculations to your original business.
JAXA Chartered Accountant is one of the best accounting firms in Dubai. We are providing services like audit, VAT, Tax. Our audit experts are incredibly professional and well versed and will help you to carry out all the activities in an error-free manner. To have a further word, contact us. We would be glad to assist.