We have discussed about the benefits of an annual audit and how to select one in the UAE but in have not focused on what an internal audit is. An internal audit is the evaluation of company’s internal controls, corporate governance and the accounting processes. In Dubai it is common for more established companies or companies in the growth phase to hire an outsourced internal auditor. Here we will discuss what the benefits are for a business organization to hire an internal auditor
Having an internal auditor will help the management of the company to improve the internal controls, corporate governance and the accounting processes. The client is able to have an additional expert oversight on the accounts team, leading to have more accurate financials. Unlike an external audit, this service is more client or business centric, the management can decide the scope and materiality
Bottom Line
1) Improvements in Internal Control (reduce fraud)
The management will be given a report on the internal control corporate governance and the accounting processes by the outsourced internal audit team. This gives them the opportunity to improve on them.
2) Oversight on the accounts team
Appointing an expert internal audit for the UAE business will make sure a qualified auditor oversee the current accounts team. This is especially important if the management believes that the accountant onboard is not experienced enough and needs a guiding hand. This also takes the work load of the management team on supervising the accounting job.
3) More accurate financial statements
Since the internal audit is conducted the accounting in the company is corrected on a regular basis. Internal audits can help ensure that financial statements are accurate and reliable. This will help prevent financial misstatements and other issues that can negatively impact the company.
4) Enhances Efficiency
Internal audits can help identify areas where processes can be streamlined and made more efficient. This can help save time and money for the company. Our firm focuses more on the efficiency of the finance and accounts departments.
5) More client-centric (Unlike an external audit or statutory audit)
The scope of the engagement of an internal audit is more client-centric. The management of the company can decide what needs to be included in the scope to cover the areas they consider as important. We often even modify the scope during the engagement, based on the feedback from the management. In the end of the day the objective of the management must be met.
Need Help?
To discuss your internal audit requirements in the UAE feel free to contact our audit professionals to guide you on what needs to be done next.
