Internal Audit

Best Internal Audit in Dubai

Internal audit is a service that provides the organization with an unbiased and independent review of its finances. The information collected by the internal audit aids professionals in mitigating organizational risk, controlling environments, and improving the effectiveness of strategies. An internal audit in Dubai can allow the organization to streamline its finances and create better management. This service is provided by a professional auditor, who evaluates the books and controls of an organization, and identifies weaknesses within the processes.

The internal auditors then create a plan to streamline the process of the organization and restore balance. With the help of professional auditors, companies can work on critical business areas including supply chain management. Certified auditors use a systematic and disciplined approach when assessing or evaluating the operations of an organization. They bring their methodical and experienced approach to the company and use their skills to improve their day to day working.

What is Auditing?

Auditing is examining accounts, books, documents, vouchers, and statutory records of the company to assess the financial condition of the organization. These books allow the professionals to evaluate the existing financial system of the organization and present a fair view of the accounting data. Auditing allows entrepreneurs to identify potential problems in the financial flow of the organization and fix them before it affects the business operations. Regular internal audits can help companies manage potential fraud and safeguard their companies from financial abuse.

The Role Of An Internal Auditor

An internal audit offers its services to an organization by performing these three key roles.

Operational Analysis

The first step of providing an internal audit in Dubai is by reviewing the operations and procedures of the company. The auditor reviews the essential documents and ensures that best practices are being followed as per the company’s goals. Once the auditor has examined these documents, they report their findings and work closely with the management to improve the process in order to meet the firm’s objectives.

Reviewing Compliance

An auditor stays updated on the current industry standards and laws. They use their knowledge to help companies comply with the latest legislation. The auditor explains the consequences of non-compliance and ensures that the organization does not suffer because of poor compliance with industry regulations.

Recommending Controls

Evaluation of the effectiveness of the company’s control is only the first step of internal audit in Dubai. After the evaluation, the auditor recommends ways to improve the organization’s control. They help the companies put effective controls in place that will keep the organization focused on its objectives and goals. These controls also help them mitigate risks and avoid any loss due to poor control.

The Objective of Internal Audit

An internal audit is primarily used to evaluate the operations of an organization. However, an audit has other objectives as well, which include:

Asset Protection

The auditing process includes verification and valuation of assets. The asset is physically verified to ensure the owner is in legal possession of the assets. Also, transactions like the sale and purchase of the assets are recorded and verified. This ensures that assets are protected and correctly valued.

Tracking Errors

When providing an internal audit in Dubai, the auditor will verify the financial statements and ensure no mistakes were made during the recording. The audit is conducted at the end of the financial year, meaning the error will be spotted and rectified before the books are closed.

Fraud Detection

With regular internal audits, detecting fraud becomes easier. The auditor will keep a check on the books and employees and ensure that no fraud is committed. The gap between fraud occurrence and detection is also reduced, making it easier to identify and take measures to fix it.

Developing Better Accounting System

Internal audits check the accounting system of the firm very closely. This means every transaction, voucher, sale, purchase, and expense will be verified. Regular verification of entries reduces the chances of any errors and allows the organization to create a better accounting system.

Reviewing Business

The primary purpose of an internal audit in Dubai is to evaluate the operational and financial aspects of a business. This means, during the financial year regular audits can point out any mistakes, and help businesses in strengthening their operations.

Proper Control

An internal audit allows the business to keep strong control over the organizational activities. This improves the authenticity of financial records and also affects the efficiency of the organization.

Benefits Of An Internal Audit

An internal audit can allow the business to evaluate its business operations throughout the year. Internal audits can benefit a company in several ways, and some of them being:

Identifying Possible Improvements

Audits are not only used to find the discrepancies, but through them, you can also find the ways and means to improve your business. These insights will allow you to adopt best practices and improve your daily operations.

Better Decision Making

Internal audits can gather a lot of beneficial data, and reviewing it will allow you to make more informed decisions. The reports show the external version of the company without any bias and enable the management to make decisions to ensure success.

Reviewing Implementation Of Policies

Developing policies is one thing, but the status of implementation can only be reviewed through an internal audit in Dubai. Through internal audits, you can review the impact of your policies and strategies.

Increase The Reliability Of Company

Internal audits allow the company to share the reports with shareholders and remain transparent. By showing these reports, you build trust and reliability between management and shareholders.

Solving Problems Through Anticipation

Internal audits can identify problems before they occur. This allows you to stay prepared for potential problems and solve them easily as and when they occur.