Internal Audit Dubai: Importance and Procedure
We all know that Dubai is known as the commerce and trading hub of the world. Entrepreneurs and investors from all over the world come here to trade, invest, and execute other business purposes. Companies are establishing everyday and hence, audit firms are no exceptions. The contribution of audit firms to Dubai’s economy is quite impressive. So, here’s the reason why internal audit Dubai is necessary for companies over there. Not only it lets companies identify errors but also plays a critical role in various ways.
In this blog, we are going to discuss the advantages of carrying an internal audit in companies and what procedure companies may follow for the same. Let’s find out-
Benefits of Carrying an Internal Audit for Companies
The company carrying an internal audit avail several advantages of the process. Some of them are as follows:
Identification of Frauds
With regular internal audit Dubai, companies can evaluate their controls and reveal any evidence of fraud, abuse or waste of assets. The recurrence of internal audits depends on the process to be examined or the department. For instance, a daily audit is required for a manufacturing company, while for human resources, an annual review is sufficient.
Good Corporate Governance
Internal audits assess the internal controls of a company, including its accounting process as well as corporate governance. They ensure the organization is in compliance with laws and regulations and have accurate financial reporting and data collection on time. They also aid in maintaining operational efficiency by determining problems and fixing lapses before they are identified in an external audit.
Quality Control
Internal auditors perform the role of consolidating assurance and consulting. Assurance works to inform the management of how well systems and processes of the company are crafted to keep the goals on track. On the other hand, consulting advises the management on the improvement of those processes and systems if and when required.
Protection of Company Assets
An internal audit assists companies in verifying their assets and suggest the right security standards for protection from fraud. The internal auditors execute a program serving stakeholders and management through a systematic risk assessment.
Procedure for Company’s Internal Audit Dubai
Typically, an internal audit requires four general stages of activities. They are described as follows:
Step 1: Planning Process
Firstly, the team of internal audit defines the scope and objective, review guidelines related to audit such as laws, regulations, company policies, industry standards, etc., and review the outcomes of previous adults. Furthermore, the team will set a budget and timeline for the audit procedure, identify the process owners to be involved, build an audit plan to execute, and schedule a kick-off meeting for initiating the audit.
Step 2: Fieldwork- Actual Act of Auditing
The audit team is supposed to execute the audit plan throughout this step. The team will interview the key personnel for understanding the process and controls, testing the control for a sample for a certain time period, reviewing related artifacts and documents for executing controls, documentation of work performed, and determining exceptions and recommendations.
Step 3: Reporting of Audit
As can be predicted, the step includes the drafting of the audit report during the reporting phase. The report must be written clearly and succinctly to prevent any misinterpretation and further, to motivate the concerned people to read and understand the report. The findings in the report must be accompanied by actionable recommendations. Further, this should lead directly to process improvements. Besides, the process must comprise drafting the audit report, review with the management to assure the findings’ accuracy, and issuance and distribution of the final report.
Step 4: Follow-up
It’s the last stage of the internal audit procedure which is often neglected. It’s a vital step that ensures the recommendations have been implemented to address the finding identified. In case the organization fails to follow-up on the implementation of recommendations, then the chances of any changes to be made are very rare.
In a Nutshell
It is quite evident from the above discussion that an internal audit is essential for any organization to keep itself protected from any kind of financial or other risks. Such audits help to avoid frauds that many companies nowadays suffer from. Therefore, every company must conduct an internal audit over a certain time period.
In case, you don’t have an internal audit Dubai team in your organization and looking for some other companies that work toward conducting such audits, then contact RVG. Whether it is due diligence or Forensic and Fraud Investigation, we will conduct all for you depending on your needs. You will stay updated for each process carried out by us. Hence, contact us now and get the audit done.
