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Post By: admin April 07 2020

Tips To Avoid Internal Audit Mistakes In Dubai, UAE

Tips To Avoid Internal Audit Mistakes In Dubai, UAE

Still you find mistakes with your financials, then it's high time to focus on internal audit services. Internal Audit is a micromanaging independent function within an organization for measuring the internal control procedures and quality check. For the purpose of achieving this objective, the Internal Audit Department needs a broad framework under which its functions should be organised. It needs a document that defines the department’s policies and procedures to guide the officers of the department and ensure consistency in approach and methodology. The main objective of the internal audit services in Dubai helps the organizations to achieve their stated objectives by using systematic methodology for analysing business processes, procedures and activities in the aim of finding problems and providing solutions. 

The benefits of internal audit services are:

  • Accurate processing
  • Policies and procedures in place
  • Safeguards against fraud risks
  • Operational risks and information systems controls
  • Setting up of organizational hierarchy.
  • Enhance the credibility of financial reports.
  • Provide reasonable assurance to the external auditors

Understand The Importance Of Real Auditing Skills

For the success of an internal audit service in Dubai, strong technical and theoretical aspects are important. These characteristics won’t set you apart. Internal auditors in Dubai possess the following additional characteristics: 

• Vision and instinct: 

Through the client’s situations and better understanding of their business creates vision and instinct. Working with multiple clients can help the auditors to obtain wide knowledge on industries and their functioning.

• Able to see the big picture: 

Identifying the big picture of business is an important aspect. Auditors must be able to understand the business and industry. This requires the ability to quickly frame a picture of the business, the organization and key attributes within it. Establishing a good connection and linkages within the organisation is inevitable.

• People skills: 

Auditors must be a team player who can deal with any number of clients within any industry and could maintain a good liaison among them.

• Decision-making ability:

Auditor to be strong and effective decision makers. Decision making can be hard. Most every decision involves some conflict or trade-off. Choosing the best decision among the alternatives is the most difficult task.

• Leadership: 

A good auditor must strive to become a successful leader. Client watches and considers auditors as trusted partners or confident helpers for taking crucial decisions.

Importance Of Resource Requirement Planning 

It is also called RRP for short, and is to plan the requirements of productive resources including machine or equipment, workers, and funds based on the Production Plan. In specific the product profile and production per month are considered. Capacity and production planning are made in track by using this software. Material resource planning is also done at various levels:

  • Inventory Levels – 

It enables inventory managers to be able to reduce the level of component parts and raw materials inventory RRP systems work backward from production scheduling, in which it measures the amount of inventory required to meet the production activities. It manages inventory levels and lowers the amount of cost that is dedicated to holding inventory.

  • Purchasing Planning - 

This portion of the software pertains to what inventory is needed in order to meet demand. Information availed helps in the facilitated planning for the future production.

  • Production Planning – 

Production planning is purely based on the amount of resources available and the demand within the markets. Inventory storage is also an inevitable part.

  • Work Scheduling – 

Planning the work without creating an overstaffing line for productionalong with maintaining the good amount of material resources required for continuing operations.

Keep The Big Picture In Mind

This kind of thinking creates context and enables people to honour the values we seek to live and work. The big picture is all about clarity on your goals. Keeping this picture in mind you can hinder the negative effects on your business in Dubai. Recently many companies shifted to video-based working to monitor and identify the pitfalls. It helps to increase the productivity and return on investment through high rated sales. Internal audit video helps to measure the compliance with standards, employee performance, or any matters that affects the reputation of the organisation. 

Auditor Mindset

In psychology literature, a mind-set is a “cognitive orientation that promotes task completion”. The Mindset of the Auditor considers the goals, relationship with clients, stereotyping effects and other inferences regarding their work which are proved from studies. Internal Auditors review the financial and non-financial aspects of a company as a whole. This reviewing helps in decision making for the intended users. Internal auditors check the policies and procedures within the organisation and their compliance with the international standards.

Plan For Unexpected

Sometimes unexpected events like natural disasters, economic failure and loss of personnel can affect your business functioning. As a result a lot of financial and non-financial risks may arise. The future is unexpected. Unexpected events affect the financial stability of the organisation’s auditor cannot predict the future of financial position because the future is uncertain, but he can take a plan for unexpected losses to the business. All unexpected events are not negative in its nature. The possibility of unexpected financial hardship means you may need to change the way you think about and handle your money. So that auditor can plan for meeting the contingencies, it is important to plan for unexpected includes:

  • A detailed list of risks which will occur 
  • Identify the actions to tackle the risks.
  • Introduction of emergency fund, insurance etc

Avoid Massive Audit Reports

An internal audit report is the final product of the audit work.It is prepared by the Internal auditor and submitted to the management for decision making. Internal auditor expresses his views on the functioning of the business along with positive and negative aspects where more changes to be considered. The report is prepared with at most care suggesting the improvement areas. The reports must be systematic and more oriented for improved actions and decision making. Since auditing is a field work it’s a challenging one. Auditor takes additional efforts for present an accurate report. After preparing the report it is communicated to the intended users for making improvements and changes in the course of functioning. Concise and clear reports help to introduce action plans and to conduct operational audits for the functioning.

Why choose CDA for Internal Audit services 

CDA has been providing its expert services to the business world for the last so many years fulfilling the needs of its clients with complete satisfaction. We can assist you to deal with the audit services of your business in a better way. Our Accountants can give you advice on effective audit procedures. They can help you in conducting audits. CDA Accounting & Bookkeeping Services LLC also professionally handle CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services on time according to the convenience of our good clients. Feel good to contact us. CDA is always there for your relief!!! Our experts will give you one-hour Free Consultation to drive away your worries!