Why IT Controls Are Real Controls for a Company In UAE?

Within the increasingly digital economy that is being witnessed today within the UAE, ranging from projects based on visionary thinking and with strong financial markets as driving forces, it needs to be realized that no successful business can be based on physical infrastructure and financial reserves but on information integrity and security.

All too often, Information Technology controls are viewed and treated either as a technical necessity and an expense facility. Still, they are the most tangible and vital set of controls for any business operating in the UAE.

Controls in Information Technology refer to the processes and systems implemented to achieve primarily two objectives: securing an organization's data and systems in terms of integrity and availability. These control systems are the equivalent of vaults, security officers, and accounting systems; the difference is that they operate at speed and magnitude that determines every single transaction and business.

Regulatory Compliance and Governance

The regulatory framework within the UAE is still developing and doing so with increasingly rapid speed, it can be considered mature, especially with regard to such topics as data protection and corporate governance. Federal Decree Law Number 34/2021 on the ‘Law for Combatting Rumours and Cybercrimes’, and sector-specific regulations, including the financial sector requirements set by the CBUAE, are very strict.

It is no longer optional, but an essential and mandatory requirement that all business sectors have the capability to display acceptable Information Technology General Controls, failing which there will be heavy penalties imposed.

The Pillars of Real Control

The real power of IT General Controls lies in their nature of being holistic and integrated across the whole business environment, which includes those basic processes that form the backbone for all activities. These are: 

• Access Control: It is a very imperative layer since access control helps in preventing unauthorized access to vital documents or accounting records to a specified system, data, and application.
• Basic Security: Engaged in user authentication mechanisms for passwords and multi-factor authentication, and user authorization methods for roles in enterprise-critical systems like ERP and Accounting software.
• Physical Security: It involves controlling and securing the physical area in which IT resources are kept, such as data centres and server rooms, so that only authorized people can enter.

Change Management

System updates, new software implementation, changes might be an act of risk. Good change control ensures that all changes made within the environment are planned, tested, and approved. Unauthorized and improper changes could affect data or result in security threats. Changes are audited for control and accuracy.

Operational Controls

Because business continuity depends directly on the efficiency and availability of your information technology infrastructure. Operations controls include:

• Backup and Recovery: It is an important consideration that there should be verified backups and disaster recovery plans implemented so as to enable quick business recovery and restoration in case there is a business failure.
• Monitoring and Logging: Also referred to as monitoring and logging services, it involves tracking system activities. It helps to detect possible security threats within an organization.

Application Control: Data Integrity at Source

Though it is the responsibility of IT/GC controls to control the environment within which these processes occur, application controls are embedded within the software. The need to embed these controls might be due to their need for accuracy, and hence, the software

• Input Controls: These make sure improper data does not enter the system. Examples include automated verification and validation steps, which would check and validate a sales transaction against an existing customer account.
• Processing Controls: The goal of this would be to ensure that all necessary transactions have been processed for completion and that no transaction has been processed more than once.

In the increasingly digital UAE, it becomes quite imperative that the establishment and implementation of competent information technology control on a continuous basis require insights from experts who possess technical knowledge and industry-wide experience. 

At Charles and Darwish Associates, we strongly believe that IT controls are indeed a starting point that any good structure meant for financial services and business resilience should have. 

How Can CDA Assist?

Our services related to Audit and Accounting include much more than a balance sheet review, but also include the review and audit of IT Controls. The audit experts of CDA will assist you in ensuring the efficiency of the internal controls implemented and testing the efficiency of the controls in place. The auditors will also provide the valuable feedbacks which can be used to update the IT Controls

Do not wait for an incident or an audit failure to confirm the reality about your information technology controls. Along with CDA, transform your information technology sector into a strength rather than a weakness.

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Jijo Saji

Senior Auditor

Senior Auditor with over 10 years of experience in auditing, taxation, and financial reporting. Proven expertise in statutory audits, VAT compliance, and advisory services across diverse industries.