Internal Audit Services in UAE

Internal Audit in Dubai is a process in which we can evalate the internal controls, corporate practices and methods of the organisation to determine its future and also to remove any future hurdles.

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Internal auditing provides an accurate and deep intuitive understanding of the functions of a company, with an objective evaluation of the company's financial condition. Qualified and experienced professionals of Jaxa Chartered Accoutnats carry out the internal audit services in Dubai on the basis of a comprehensive, validated methodology.

Internal Audit delivers reliable proof that the company's financial statements are fair representatives of its current financial situation. Moreover, an internal Audit gives the company credibility and confidence in dealing with clients, investors, shareholders, and customers.

What is Internal Audit in a Company?

An internal Audit can be an organization of people or a department within a company that provides independent and unbiased reviews of processes and systems of business organizations. Internal Audit provides the company managers and organization governing bodies with an objective source of information about the risks, operational effectiveness and weaknesses, control environment, and compliance with the existing and applicable laws and regulations.

Types of Internal Audit

1. Compliance Audit

A Compliance audit helps to ensure that all processes and transactions conducted in the company are all following the rules and regulations of the jurisdiction so that the organisation faces no hassel in the future.

2. Operational Audit

Operational Audit focuses on the internal controls of the company's systems, and procedures of conducting transactions. Its primary purpose is to improve productivity and operation effectivity and effectiveness.

3. Financial Audit

Financial Audit objectively examines and evaluates the organization's financial statements to ensure that the company's financial records are accurate and true representations of all the transactions.

4. Information Technology Audit

Information Technology Audit in Dubai is an examination of the controls by the management on IT applications, databases, operating systems, and the infrastructure. These exclusive reviews are focused mainly on Information Technology.

Internal Audit Planning Checklist

1. Providing the Reasoning

Before conducting any kind of Audit in Dubai, first the auditor must make it clear why the audit of the organization is requried and what are the different sections of the business will be targeted for the audit in Dubai.

2. Preparing Document Request List

Setting up an audit requires getting documents about how the procedure should be undertaken. Documents should include:

All proposed approaches, organization graphs, and methodology reports
Key reports on proficiency, adequacy, and procedure achievement
Access to enter utilized applications
Description of all information fields

3. Risk and Subject Matter Proficiency

Using the internal organization data is beneficial in evaluating the working adequacy of the procedures' control, and to guarantee that the procedures are accurately structured.

4. Getting prepared for Planning Meeting

The pre-arranged planning meeting will allow you to understand the objectives and target of the audit procedure.

5. Setting up the Audit Program

Placing the procedure details in a story or flowchart will make deciding on audit methods a lot simpler.

Who Needs Internal Audit

All companies operating in the mainland UAE such as banks, investors, government authorities etc., need an internal Audit. They are required by authorities to have their financial accounts audited, and these companies must keep their financial records for at least five years. Companies in the free zones do not get audited because they are not required to submit their audit report. It should be noted; however, that audit reports may be required for immigration purposes.

Avail best quality Auditing and Accounting services from JAXA

The expert will help to tackle business issues by following proper Accounting and Auditing guidelines will also assist you to scale up your business. JAXA also provides various other services such as Tax Services, Payroll Services, Cash flow forecasting and many more.

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Advantages of Internal Audit Services in UAE

Provides Objective Insight

Internal audit provides accurate insight into an organization's policies, procedures, and culture based on factual evidence rather than providing a personal opinion of the auditor.

Helps Improve the Efficiency and Effectiveness of Company Operations

The activity of Internal audit will provide a review of all the policies and procedures of the company which are being followed. The company management can identify control recommendations to improve company processes.

Assess Organizational Controls

Internal auditing is advantageous because it improves the organization's control over all the business activities as it evaluates the efficiency of the task and the operating effectiveness.

Identify Risks and Protect Assets

Internal audit helps the management and stakeholders to identify risks to the business through systematic assessment of all the records and reports, which further assists in the identification of any gaps in the environment and allowing corrective measures to take place.

Ensure Compliance with Rules and Regulations

Regular internal audits ensure compliance with all the relevant laws and regulations. You'll have peace of mind knowing that you are ready for the following External Audit Services in Dubai.

Avoid Fines

Additionally, you gain the trust of the client and also avoid paying hefty fines for non-compliance.

Process

Selection

The selection of audit activities is based on a potential risk approach. A meeting shall be held between the internal auditor and the management to discuss any obstructions and risks and eventually meet objectives.

Planning

Planning starts with identifying the objective and scope of the audit to bring out steps in meeting the objectives. Management is also included in this phase, and the meeting details are recorded in the planning and scoping memo.

Fieldwork

The fieldwork phase is the actual performance of the steps identified in the planning process. Some steps may include conducting interviews and surveys and reviewing laws, policies, and procedures accepted and prescribed to be most effective.

Reporting

As the fieldwork concludes, a meeting with the management will again be held to discuss the results, including specific findings. Other subjects of the meeting also include other observations and recommendations.

The auditor will ask the management to respond to the report with a corrective action plan with an implementation timeline.

Follow Up

A follow-up will be made for assurance to ensure that the corrective action plans are properly implemented. Action plans that are non-progressing are to be reported annually to the company executives.

FAQs

What is the difference between internal and external audits?

Internal Audit is a discretionary function that is performed by people working within the organization as employees. External Audit is a mandatory function performed by 3rd party team appointed from outside the organization.

What is the role of internal Audit?

The role of an internal audit is to review the processes and systems of a company and provide assurance that its internal control processes and risk management governance are objectively operating.

What are the stages of internal Audit?

Internal Audit has five stages: Selection, Planning, Conducting, Fieldwork, Reporting the results and following up on corrective action plans.

What are the tips for a successful internal audit?

Internal auditors in Dubai, to become successful, should possess vision and instinct, be able to see the big picture, be good team players, and have decision-making abilities.