A smooth-running internal audit operation is not only strategic but also imperative for the public sector and corporate sector organizations. This process assists the company in realizing its objectives by bringing a systematic and disciplined approach to evaluation. It also aids in improving the control, governance processes, and effectiveness of risk management.
Need for an internal audit
In today's times, Dubai is one of the promising trading and commercial hubs. It is increasingly becoming a preferred destination for investors and entrepreneurs from all over the world. Therefore, it becomes utterly essential for the government to have strict legislation and regulations in place. This is one of the significant factors behind the soaring numbers of audit firms in Dubai.
An internal audit permits one to verify company assets and devise appropriate security measures to protect them. It also examines the organization's compliance with the audit policies and procedures. Also, most importantly, it investigates company reports for any form of theft, misconduct, or fraud.
Internal Audit Procedure:
One can viably locate several trustworthy internal audit firms in Dubai. Though the specifies change according to the organization, an extensive audit process usually remains similar to all. There are five stages, as elaborated below.
● Operating environment
The organization's operating environment is reflected in its ethics, management styles, and business practices. An internal auditor assesses the working conditions of the company through conducting interviews with departmental employees, external auditors, accounting managers, and risk specialists.
● Review controls
To determine the functioning of a company's internal control system, the auditor reviews past reports and working papers. They identify procedures, methodologies, and tools that build controls. During the process, interviews and inquiries are conducted with the current employees.
● Test controls
Furthermore, the audit firms test the organization's policies, procedures, and controls to ensure that the structures are appropriately and systematically designed. A firm must produce a control system that illustrates detailed procedures and guidelines for a better decision making strategy.
● Account balances and details
This is one of the pivotal steps of the process. An internal auditor or the accounting consultant in UAE examines the account balances to ensure that the statements are in line with the regulatory mandates and accounting standards. They also look into the completion and transparency of the financial reports.
Concluding statement
An internal audit helps to ensure that the firm is operating in a way so as the business goals and objectives are equitably met. The process is integral in the improvement of the functioning of the company and adds significant value to its deliverable.