Internal auditing refers to an independent, objective assurance and consulting activity designed to add value and improve a company's operations. It helps the company accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Internal auditing is a profession designed to improve an organization’s operations. Performed by certified internal auditors with in-depth knowledge of the business milieu, systems, and process, it helps an organization to meet its predetermined objectives and goals in a systematic approach to study and improve the effectiveness of risk management, control and governance process.
Internal auditing ensures that the organization is working fairly enough to mitigate risks, and that business goals and objectives are met. To do this, internal auditors work with an organization to systematically review its systems and business operations. These reviews are focused on recognizing how well risks are managed and whether agreed procedures are being followed.
Need for Internal Auditing in Dubai, UAE
1. Increases the Operational Efficiency
Internal audit reviews your organization’s policies and procedures periodically. These processes help in mitigating your business risk. The continuous monitoring and review will allow you to identify recommendations to improve the effectiveness of business processes.
2. Evaluates Risks and Protects Assets
An internal audit program assists management and stakeholders in identifying risks through a systematic risk assessment. A risk assessment can help to recognize any gaps in the business environment and eps to overcome the same.
3. Effective Control
Internal audit improves the efficiency of the organization by controlling its business risks. Periodic auditing allows the management to identify the suitable solutions to the predominant business risks.
4. Ensures Compliance with Corporate Laws and Regulations
Internal audit helps you prepare your company for an external audit. It will be easier to prepare the legal documents with the help of periodic internal audits.
What Are the Advantages of Internal Auditing?
Internal auditing is beneficial for a company in the following ways:
- Internal auditing helps a business assess its effectiveness and efficiency, and thus serves as a measure of performance analysis.
- It can prove as a proactive tool for risk management by proactively detecting any anomalies or inconsistencies in a company’s operations or reporting.
- Internal auditing helps a business revisit its key business processes, providing the opportunity to scale and improve persistently.
Internal Audit Process
Although the audit specifications change according to organization, the audit process is similar for most organizations, and consists of nine stages. Audit firms in Dubai conduct the following procedures to minimize the business risks and increase the efficiency within an organization:
The certified internal audit team will develop an audit plan based on the available information.
The auditing team will schedule a meeting with the managers of the process to be audited and recognize the objectives of the audit, and how long it is expected to last.
It includes an interview with employees and staffs, review of procedures and manuals, compliance with the governmental laws and regulations.
If there are any audit findings, the auditors must keep updating the status of the audit on a regular basis to the department which is undergoing an audit.
The report draft will include the audit objectives and scope, opinion and summary, findings and audit recommendations.
6. Management Response
The respective members in the organization will receive the audit draft to confirm the facts and respond to the audit recommendations. The management will get 21 calendar days to complete the corrective actions.
The final audit report will be reviewed and all issues would be resolved by the auditors.
The report is then released to the audited department and other related departments, as requested.
The certified auditor’s team will conduct a follow-up on the management responses to the audit findings and recommendations within a reasonable time frame.
JAXA Internal Auditing Services in Dubai, UAE
Our Auditing firm in Dubai and the rest of UAE provides the following internal auditing services:
- Evaluating business risks and offering relative suggestions
- Compliance auditing, informing the management of the degree of compliance with established policies, procedures, laws, regulations, contractual provisions, etc.
- Examining the company operations to assess the company's performance with respect to its business objectives
- Advising and assisting the organization in the development of internal audit and risk methodologies
- Assisting the management in detecting the presence and extent of financial inconsistencies, if any, and in gathering any necessary evidence for legal purposes
- Assessing a company’s internal control structures, ensuring compliance with the regional laws and regulations, and confirming adherence to operational procedures
- Identifying areas of ancillary revenue and gaps in the current revenue streams
- Providing practical recommendations for improvement in control systems
At JAXA Chartered Accountants in Dubai, we offer interim and full-time internal audit. Our internal audit professionals take a risk-based approach to internal audit to help clients improve performance and operating efficiency. We go beyond traditional fundamentals and add tangible value, to elevate internal audit to an even more strategic and productive role in today’s corporate governance environment. We provide an independent professional evaluation and advise on the quality and effectiveness of the control environment within the organization. We also identify areas for improvement and implement strategies to help you to achieve your organizational objectives and make a positive contribution to the successful operation of your business.
For internal audit services in Dubai, do contact us – we’d be happy to assist!
How long does an internal audit take?
An internal audit normally takes 1 to 2 weeks to be carried out.
Is it mandatory to have an internal audit in the UAE?
An internal audit may or may not be mandatory in the UAE, depending on the size of an organization and other managerial requirements.