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, and accounting processes conducted in such a way that it adds value to the entity by improving its operations. In our internal audit services, we go through different business operations and internal controls of the entity.
Objectives of Internal Audit
Our main aim is to provide the business with the tools which can help the company to improve its operational efficiency. We identify the problems and lapses and work to eliminate them.
We check whether all the business operations are compliant with the law or not. We also support the business in maintaining accurate financial reporting and safeguarding of assets.
Our Internal Audit Services and External audit services provide the necessary confidence to 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 and effectiveness of all business operations
- To make the financial reporting timely and accurate so that that company can rely on them
- To keep all business aspects compliant with laws and regulations
- To ensure that the assets of the company are adequately safeguarded
Our Internal Audit Services
Internal audit is undoubtedly necessary in the present world. The world keeps on changing with new tech and innovation. Every business wishes to become better. The application of tech, automation, new processes, etc. in the company is necessary.
When your business processes are efficient, you can achieve higher profitability and meet organizational goals and objectives. Our internal audit service will help you analyze your business processes, control weaknesses, and suitable measures to help you achieve operational efficiencies.
We own dedicated resources of internal auditors, have proprietary processes, and personalized tools to bring your success to reality.
Our first task is to understand your business. Then, with our services in Dubai, we develop a strategy that aligns with your business 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 the form of 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 and design an effective internal audit program, provide tools, best practices, methodologies, and our checklists, and carry out the audit. Our Internal Audit Co-sourcing service enables your internal team to complete the audit in time as per the global best practices.
Internal Control Framework Design and Implementation
Our Internal Audit Services 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 in taking a legal course of action. We also provide forensic audit services.
Outsourced Internal Audit Services
Our Outsourced Internal Audit Services help you focus on your core activities. At the same time, we take the burden of strengthening your internal controls to achieve operational efficiencies, accurate financial reporting, and safeguarding of assets. Our experienced internal auditors carry out the risk-based audit, document their findings, and issue an audit report highlighting their recommendations.
Business Process Optimization
We study the ‘As Is’ processes, identify control weaknesses, duplication of efforts, and suggest ‘To Be’ processes to improve operational efficiencies, strengthen internal controls and internal checks, and achieve cost-savings.
Follow-up Engagements
Here we take the last internal audit report as the base and help you take action on reported items to enhance the operational efficiencies and then go deeper into the operational aspects of the company to achieve cost efficiencies and cost reduction. We also keep regular monitoring of the functioning of the company to ensure that internal controls are working as intended.
Internal auditing process
Generally, our services in Dubai have four different phases, followed one after another, as mentioned below.
Planning
Under this first step of our internal audit procedure, we define the primary objectives and scope of our service. 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 and create a well-defined plan. We also 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.
Internal Audit Methodologies
Our Internal Auditors are well versed in the principles of corporate governance and risk management processes. We study the business processes of a company, identify process improvement opportunities, and recommend and implement them.
Our Auditors take a look at the internal procedures and suggest ways to improvise them. We also 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. Our internal auditing team also studies regulatory compliance needs and recommends the necessary steps.
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.
Risk-based internal audit
The prime focus of the risk-based internal audit is to identify and mitigate the risks involved in business operations. It‘s done by evaluating the current risk management framework and making the improvements by finding the lapses.
We also calculate the possible risk appetite, which is the threshold of risk which company is willing to accept. It is based on a variety of factors like total capital of the company, borrowing power, liquid assets, perception of the management, type of industry, 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 a plan which can keep both Likelihood and Consequences minimal. While drawing the plan, we make sure to include all types of risks. Primarily, we focus on Inherent risks and Residual risks.
We identify the actions or control which are missing because of which Inherent risk exists. We set up suitable controls to reduce the risk. After the implementation, if risks still exist, we calculate it as Residual Risk, and further try to minimize it.
To keep track of all our risk management activities, we create a risk management register that contains information regarding:
- Risks
- Causes of Risks
- Risk Categories and Ranking
- Potential Responses
Overall, our job will be to get rid of risks as much as possible or at least to keep the likelihood and consequences with limited impact. Our risk-based internal audit will help the businesses to manage risks and achieve higher profitability.
Importance of Internal audit
Internal auditing is highly critical as it suggests improvements in business operations. It also helps to put a check on whether the business processes are aligned with documented policies or not. Let’s have a look at its significant advantages in detail.
When an internal party conducts auditing, 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. Therefore, we can provide you with an unbiased opinion about the functioning of your various business operations.
For improving operational functionality, the business operations must align with the policies and procedures defined by the company.
One needs to keep a check on policies and continuously improve them, which will eventually make the operations more efficient. For that, we conduct frequent internal audits to make sure that a business utilizes the best of policies and procedures.
An internal audit allows identifying the risks associated with different business processes. We conduct a systematic risk assessment to identify the gaps and draw a plan to eliminate the risks as much as possible.
What you can expect from our Internal Auditing Services
With our Internal Auditing Service in UAE, audit committees, boards, and CEOs can be sure of the following:
As a top internal audit firm in Dubai, our approach is to work with our clients on the premise of mutual trust and respect, ensuring personalized service. We tailor our service based on your requirements and make sure that you receive the maximum benefit out of it.
Our Strength
- We always remain updated with the latest trends and updates in all the major fields. These updates include but are not limited to, accounting standards, internal audit standards, risk management principles, technical advancements, law amendments, and new methodologies.
- Our team has years of experience in conducting an internal audit. We have been continuously conducting 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.
- We have proprietary techniques for finding the lapses and scope of improvement. It also makes sure no essential aspect gets missed while conducting the internal audit
Why N R Doshi and Partners?
Why N R Doshi and Partners?Experience is the key to improvement. We are better than we were when we started internal audit services. In this period of thirty-four years, we have served hundreds of clients with our internal audit services in UAE.
With the experience, we have developed our techniques to make compliance check efficient, governance optimum, and business operations effective. As our team has expertise with clients of different sectors and sizes, you can reach us out with any need. We are here to make every possible attempt to fulfill your needs with your internal audit service.
Besides internal audit, we even conduct external audit, forensic audit, compliance audit, agreed-upon procedures audit, etc. Also, we can even cater to your accounting, VAT, and advisory requirements.
FAQs: Internal Audit Services
How long does an internal audit take?
Internal audit may take up to a few weeks depending upon the size of the organization and scope of work.
What should we expect when an internal audit is on?
Generally, internal auditors start from the past external and internal audit reports and then go on to understand organizational policies and procedures, control weaknesses, and have a thorough understanding of the way a business operates. Auditors interview employees, ask for evidence and document their findings.
What is the purpose of an internal audit?
Internal audit is aimed at evaluating the performance of the business and identifying weaknesses that exist in the way the company operates so that such gaps can be bridged and organizational goals can be achieved.
How different is an internal audit from an external audit?
Internal Auditors are appointed by the management to provide continual monitoring and assessment of all business activities. External auditors are independent auditors, and they provide their opinion on the true and fair view of the financial statements of the company.
What are the benefits of an internal audit?
The internal audit assesses the operational efficiency of an organization, evaluates if the internal control mechanism set by the management is working as desired and recommends action items to improve the overall efficiency of the organization so that it can achieve its goals and reduce costs.
When is an internal audit required?
When the organization is going through operational inefficiencies, loss of assets, frauds, and increase in the size of its business and complexity, it should think of establishing best policies and procedures and appoint an internal auditor to check if the established policies and procedures are working as intended.
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