Role and Functions of Internal Auditors in UAE
A business may need a judgment of its present development and make assessments of the future plans. It may need a pecuniary audit of its records for acquiescence and evaluation. A business in the UAE must have an in-depth knowledge about the rules and regulations of the Emirates to comply with the updates by the government. It should abide by the tax laws and VAT rules, Tax return filing and many other complications to avoid any future chaos. If such a situation is not handled properly, it may lead to pandemonium which will affect the smooth functioning of your business. Here is the magnitude of the service of an Internal Auditor for your business in the UAE. An expert auditor can provide you with certified assistance and guide you in all your financial matters to tackle the turtle and gear up; for, the audit report delineates a clear-cut and comprehensive representation of the pecuniary stability of a company. Read more to understand the role and functions of internal auditors in UAE.
Internal audit is a sovereign, objective assertion and consulting movement designed to add value and improve the operations of a business. Internal Audit assists a business to achieve its objective by bringing a systematic, disciplined approach to appraise and advance the efficiency of risk management, control and governance process and compliance with applicable laws and regulations.
Who is an Internal Auditor?
An internal auditor is a connoisseur who is assigned by a business to execute its Internal Auditing Activities. The internal auditor helps to find ways to correct predicaments rapidly, to sustain a good reputation and thwart money loss.
Purpose and Scope of Internal Audit in UAE
The purpose and scope of internal audit should be aptly broad to meet the need of management to achieve its objectives. An internal audit includes:
- Re-evaluation of each control and analysis in terms of costs and benefits
- Reassessment of the existing system of controls to determine whether it is in synchronization with the structure of the organization.
- Reassessment of the steadiness and sincerity of financial and operating information and the means used to recognize measures and to categorize and report such information.
- Reconsideration of the means of preservation of assets and authenticate the existence of such assets
- Identify the weaknesses within the processes of the company
- Institute an effectual internal control environment
Role of Internal auditors in UAE
Internal auditors play a significant role in the continued existence and opulence of a company. They add value to the company by reporting risk factors related to the reputation of the firm, operational efficiency, strategic growth, environmental impact, and the employee treatment. They function as consultants who carry out the appraisal, and advise the company administration on how to handle the risk factors that they have recognized.
Functional Areas of Internal Auditors in UAE
- Proper governance of the company
- Assessment of risk management
- Administrative sovereignty over competence or efficacy of operations
- Administrative sovereignty over the consistency of fiscal and management reporting,
- Safeguarding of assets
- Compliance with laws and regulations
- Help to conduct proactive fraud audits to identify potentially fraudulent acts
- Participating in fraud investigations under the direction of fraud investigation professionals
- Conducting post investigation fraud audits to identify control breakdowns and establish financial loss.
Different Types of Internal Audits
Some of the major areas of internal audits are discussed below:
1) Performance Audit: This audit is to check whether the company is fulfilling the measures laid down by the management in order to achieve the goals and objectives of the company.
2) Regulatory Audit: This audit assesses whether the company is compliant with applicable laws, regulations, policies, and procedures of the land. Breakdown in compliance with some laws may result in fines.
3) Operational Audit: This is conducted to measure the control mechanisms of the company for their overall competence and consistency.
4) Environmental Audit: This audit checks the influence of a company’s operations on the environment and whether the company complies with the laws and regulations pertaining to the environment.
5) IT Audit: Information Technology Audit covers the areas of the information systems and the fundamental infrastructure. The purpose is to make sure the precision of their processing, the security and the confidentiality of customer information or intellectual property.
The Process of Internal Audit
In general, an internal audit goes through four phases. They are:
- Fact –finding
Why you should hire an internal auditor in UAE
The following points may make it clear the need for an Internal Auditor for your firm in UAE.
a) Precision in financial statements
The integrity of a business is more important in UAE as it brings goodwill and a prominent status to the company. The financial report of a company will be more trustworthy if it is audited and declared that it is precise by a reputed Audit Firm. During the audit, the auditor check whether the financial transactions are precise or not and verify that the company has followed the widely accepted accounting standards in UAE.
b) Fortification against deception
An auditing firm can identify any deception or errors while auditing and defend the company by alerting about the fraud and mistakes, and help to take preventive measures to overcome the situation.
c) Proficiency and experience
Proficient and experienced auditors can scrutinize the important data that are pertaining to the audit, and the management can make use of this information to set future targets and goals.
d) Corroboration of domestic controls
An auditing firm can validate the domestic control and procedures of a company. They concentrate on the system performance, process of record-keeping, deceitful activities, payment of taxes and so on.
e) Compliance with the government directives
The companies in UAE should follow the existing laws and regulations of the mainland. This will increase the reputation of the company as the failure to adhere to the laws will attract penalty and loss of goodwill, money, and peace of mind. An auditing firm can assist the company by ensuring that the concerned firm is complying with all the laws and regulations prevailing in the mainland.
CDA Audit Firm in Dubai, UAE comprises of proficient and experienced auditors who are able to handle and solve any issues pertaining to the Audit Report of your company. CDA offers a variety of services including Internal Audit, Tax Compliance, Due Diligence Audit, Financial Audit Services. Etc. Our skilled experts will ensure you peace of mind and rein your business to gallop.
Do contact us. Our accomplished consultants will offer you one-hour free consultation regarding your queries.