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