What is Internal Audit
The internal audit is the process of evaluating all business aspects of an organization, including internal controls, regulatory compliance, corporate governance, as well as accounting processes, conducted in such a way that it adds value to the entity by improving its operations. However, our internal audit services in UAE cover different business operations and internal controls of the entity.
Objectives of Internal Audit
Our main aim is to provide the business with the tools to help the company improve its operational efficiency. We identify the problems and lapses. At the same time, we work to eliminate them while ensuring legal compliance.
Additionally, we also support the business in maintaining accurate financial reporting and safeguarding assets.
Our Internal Audit Services and External Audit Services assure the management that the internal controls are sufficient, working as intended, and the company is resilient enough to meet the changing requirements of the external business and regulatory environment.
The core objectives of conducting the internal audit are:
- Achieving efficiency as well as the effectiveness of all business operations.
- Ensure that the assets of the company are safeguarded.
- Making the financial reporting timely and accurate so the company can rely on them.
- Ensure that all business aspects comply with the laws and regulations.
Our Internal Audit Services in UAE
In the present age, internal audit is a necessity for most businesses. Modern technology and constant innovation have raised the bar. However, what matters the most is the application of technology, automation, and new processes in a company’s existing operations.
When your business processes are efficient, you can achieve higher profitability while meeting organizational goals and objectives. Our internal audit service in Dubai will help you analyze your business processes, control weaknesses, and recommend suitable measures to help you achieve operational efficiencies.
We own dedicated internal auditors’ resources, proprietary processes, and personalized tools to bring your success to reality. We have a team of dedicated internal auditors, proprietary resources, and personalized tools to help you realize your goals. Our internal audit process starts with a thorough analysis of your business, followed by developing a strategy that aligns with your long-term objectives.
Review of the Internal Audit Department
Our Internal Auditors review the processes, working, and effectiveness of the company-owned Internal Audit Department. We evaluate our procedures and methods and verify if they are commensurate with the goals and objectives of the department. We document our results in our Internal Audit Report, identify weaknesses, suggest recommendations, and help companies implement global best practices in the functioning of their internal audit department.
Co-sourcing
We work with your internal team to design an effective internal audit program. At the same time, we provide the necessary tools and suggest the best practices and methodologies while preparing the checklists to conduct the audit. Lastly, our Internal Audit Co-sourcing service enables your internal team to complete the audit in time per global best practices.
Internal Control Framework Design and Implementation
Our Internal Audit Services in UAE include internal controls consulting, where we gather relevant information about your business and industry and design a comprehensive Internal Control Framework. We embed internal controls in each process, ensuring operational efficiencies, risk management, and safeguarding of assets.
Special Investigations
Special Investigations are aimed at finding financial and operational fraudulent acts, gathering evidence, and helping the organization take a legal course of action. We also provide Forensic Audit Services in UAE.
Outsourced Internal Audit Services
Our Outsourced Internal Audit Services in UAE help you focus on your core activities. At the same time, we strengthen your internal controls to achieve operational efficiencies and accurate financial reporting while safeguarding your assets. Our experienced internal auditors carry out risk-based audits, document their findings, and issue an audit report highlighting their recommendations.
Business Process Optimization
We study the ‘As Is’ processes, identify control weaknesses and duplication of efforts, and suggest ‘To Be’ processes. These efforts will help improve operational efficiencies, strengthen internal controls and checks, and achieve cost savings.
Follow-up Engagements
We take the last internal audit report as the basis and help you act on reported items to enhance operational efficiencies. In the next step, we will dive deeper into the operational aspects of the company to achieve cost efficiency and cost reduction. Then, we monitor the company’s functioning regularly to ensure that internal controls work as intended.
Process of Internal Auditing
Our Internal Audit services in Dubai have four phases, followed one after another, as mentioned below
Planning
In the first step of the internal audit procedure, we define the primary objectives and scope of our services. As a part of the planning process, we go through the relevant information such as laws, regulations, company policies, industry standards, procedures, etc.
We also review the past audit reports, and according to them, we define the areas to focus on. We set a budget and timeline for the internal audit while creating a well-defined plan. Most importantly, we mention the requirements, accesses, and information necessary to conduct the audit.
Fieldwork
This is the phase where our audit team conducts the internal audit. Under this phase, we interview the concerned personnel of particular business divisions. This is to make sure that we have a proper understanding of your processes and controls.
We review the related documents and artifacts according to which we test the controls for a defined period and review its efficiency.
Based on the work performed, we create internal audit working papers, including the additional recommendations.
Reporting
We make sure to create thorough reports containing information clearly and succinctly. The internal audit report also houses recommendations that are practical, possible to put into action, and leads to development.
We issue the first draft and review it with the management and then finalize it.
Follow-up
The follow up is a crucial step, which lets us know whether the recommendations from the audit report have been implemented. The follow up allows us to learn about the company’s governance on different deployments as per the findings. We conduct this step with optimum concern as follow-up explains a company about the actual improvement in business operations.
Methodologies of Internal Audit
Our Internal Auditors are well versed in corporate governance and risk management principles. We study a company’s business processes and identify process improvement opportunities. Then, we recommend the improvements to the decision-makers.
After they are satisfied with our suggestions, we will develop strategies to implement these changes.
Besides the business processes, our auditors also study the internal procedures and suggest ways to improve them. Next, we study the execution of management directives and the effectiveness thereof.
Our risk management professionals undertake risk assessments and develop a comprehensive risk-based assurance plan. Most importantly, our internal auditing team also studies regulatory compliance needs and advises on how to fulfill those requirements.
We automate the implementation of internal audit strategy through the integration of IT and monitor the day-to-day working of the organization with the help of Business Intelligence tools. With business intelligence tools, we integrate IT & company operations while automating the implementation of internal audit strategies.
Risk-based Internal Audit
The prime focus of the risk-based internal audit is to identify and mitigate the risks involved in business operations. We achieve this objective by evaluating the current risk management framework. The next step is to identify the flaws and make the necessary improvements.
We also calculate the possible risk appetite, which is the risk threshold that a company is willing to accept. This risk appetite is based on several factors like total company capital, borrowing power, liquid assets, management’s perception, industry type, nature of the business, etc.
The two other factors calculated in our risk-based internal audit are:
- Consequences: Impact of a Risk Event
- Likelihood: Probability of a Risk Event
We strive to draw up a plan to keep both likelihood and consequences minimal. While drawing up the plan, we ensure that we include all types of risks. Primarily, we focus on Inherent risks and Residual risks.
Next, we identify the missing actions or control caused by inherent risks. Accordingly, we set up appropriate controls to reduce the risk. After implementing the controls, if the risks persist, we consider them residual risks and make further efforts to minimize them.
To keep track of all our risk management activities, we will develop a risk management register that contains the following information:
- Risks
- Causes of Risks
- Risk Categories and Ranking
- Potential Responses
Concisely, our job will be to eliminate risks or minimize the impact as much as possible. Furthermore, we implement measures to prevent the recurrence of such threats. Our risk-based internal audit will help businesses to manage risks and achieve higher profitability.
Importance of Internal Audit Services in Dubai
Internal auditing is extremely critical as it suggests improvements in business operations and helps to check whether the business processes are aligned with documented policies. Let us look at the substantial advantages of internal audits.
When an internal party conducts audits, there can be a conflict of interest. In such situations, it is better to hire an audit firm to conduct an internal audit.
N R Doshi and Partners will have no operational responsibility. Hence, we can provide you with an unbiased opinion about the functioning of various business operations.
The business operations must align with the policies and procedures defined by the company to enhance operational functionality.
Furthermore, the company management must improve its policies and make vital changes to facilitate efficient operations. We conduct frequent internal audits to accomplish this mission to ensure that a business implements the ideal policies and procedures.
An internal audit allows for identifying the risks associated with different business processes. We conduct a systematic risk assessment to identify the gaps and draw up a plan to eliminate the risks as much as possible.
What you can Expect from our Internal Auditing Services
With NR Doshi’s Internal Auditing Services in the UAE, audit committees, boards, and CEOs can be sure of the following:
The internal control mechanism is effective and works as intended.
Risks are appropriately identified, classified, and managed as per the risk appetite of the organization
Business processes are optimized toward bringing efficiency and effectiveness
Assets are identified and safeguarded
Contractual obligations and regulatory requirements are complied with
Undetected issues which are hampering the growth of the organization are identified and appropriately addressed to
The internal audit framework assists the business in achieving operational efficiencies and business objectives
The overall internal auditing function is responsive to changing business needs
As a top internal audit firm in Dubai, our approach is to work with our clients on mutual trust and respect, ensuring personalized service. Our bespoke services keep your requirements in mind, ensuring that you receive the maximum benefit.
Our Strength
- Firstly, we stay informed of the latest trends and updates in all the major sectors. These updates go beyond accounting & internal audit standards, risk management principles, technical advancements, law amendments, and new methodologies.
- Secondly, our team has years of experience in conducting an internal audit. We have continuously conducted internal audits for many clients for the last few years. It has provided us with the knowledge of how we can make internal audits better every time.
- Lastly, we have proprietary techniques for finding the lapses and scope of improvement, ensuring that we include all the essential aspects while conducting the internal audit.
Why Choose N R Doshi and Partners?
Why Choose N R Doshi and Partners?Experience is the key to improvement. We entered the financial services market 36 years ago and have come a long way. Covering a diverse range of services, we have served thousands of clients. Not just internal audit services in the UAE, we cater to the GCC belt and many other geographies.
This valuable experience has helped us develop techniques to enhance compliance checks, governance optimum, and business operations. Also, our team has expert professionals who deal with clients of different sectors and sizes; you can reach them on their designated extensions. We will take care of your internal auditing needs so that you can focus on your core business tasks.
Besides internal audits, we even conduct External Audit, forensic audits, compliance audits, agreed-upon procedures audits, etc. NR Doshi & Partners is renowned for its Accounting Services in UAE, VAT Registration Services in Dubai, and Business Advisory Services. Rest assured, you will receive cost-effective and optimal quality services.
FAQs: Internal Audit Services
1) How long does an internal audit take?
Internal audits may take up to a few weeks depending upon the size of the organization and scope of work.
2) What should we expect during an internal audit?
Generally, internal auditors start from past external and internal audit reports and then go on to understand organizational policies and procedures, and control weaknesses, while analyzing business operations. Auditors interview employees, ask for evidence and document their findings.
3) What is the Purpose of an Internal Audit?
An internal audit evaluates the business’s performance and identifies weaknesses. Next, the key lies in understanding how the company operates so that the management can bridge the gaps and achieve organizational goals (with the relevant insights).
4) How Different is an Internal Audit from an External Audit?
The management indeed appoints internal Auditors to provide continual monitoring and assessment of all business activities. Moreover, external auditors are independent auditors who provide accurate and fair opinions of the company’s financial statements.
5) What are the Benefits of an Internal Audit?
The internal audit assesses the operational efficiency of an organization and evaluates if the management’s internal control mechanism is working as intended. Such measures improve the organization’s overall efficiency to achieve its goals and reduce costs.
6) When is an Internal Audit Required?
When an organization experiences the following situations, it should consider implementing the best policies and procedures while appointing an internal auditor. The auditor will analyze if the established policies and procedures serve the intended purpose.
- Operational inefficiencies
- Loss of assets
- Business expansion
- Diversification
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