Internal Audit Services in Dubai – UAE
Role of an Internal Auditor.
Internal Auditor’s role is to provide management with independent assurance on the company’s internal controls, risk management strategies and governance are operating effectively. Internal Auditor’s functions includes supervising, evaluating, investigating, and analyzing the risks and controls; checking and ensuring information and compliance with policies, procedures and laws. Internal Auditor assess the achievement of goals and objectives set by the senior management. In the case of short of stated goals, the auditor will identify process gaps and make suggestions for improvements for bringing the same.
The Objectives of Internal Audit
The objective of internal audit is to evaluate and improve the effectiveness of governance, risk management and control process. The overall objective of internal auditing is to assist all members of the management in exuding their responsibilities. Also, to help them with objective analysis, recommendations and relevant comments concerning any phase of business activity wherein they can be of service to management. In short, internal audit will help the management for:
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Assessing the risk involved
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Assisting management in the evaluation of internal controls
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To bridge the gaps by strengthening the internal controls and to accomplish organization objectives
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Evaluating process performance and managing risk efficiency
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Help to find the deviations from KPI and to get proper recommendations / suggestions for improvements
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To verify the fulfillment of plans and sound business requirements and to focus on objectives
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To evaluate evidence in connection with the situation and issues
Methodology Used in Internal Audit:
1.Defining the scope of Internal Audit
Risk Rating |
Risk Nature |
Audit Areas |
May change based on industry |
Financial |
1. Procurement & Purchasing |
2. Maintainance of Books of Accounts |
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3. Accounts Receivables |
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4. Accounts Payables |
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5. Inventory |
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May change based on industry |
Operational |
1. Information Technology |
2. Fixed Assets |
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May change based on industry |
Regulatory / Compliance |
1. Finance |
2. Compliance |
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May change based on industry |
Operational / Financial |
1. Human Resource & Payroll |
2. MIS / Business Reporting |
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May change based on industry |
Operational |
1. Admin / General Operations |
2. Human Resource |
2. Drafting the Risk Assessment Matrix
Risk Assessment Matrix is used to define the risk category of each process and sub-processes or areas under the scope of audit. The level of risk in defined considering the likelihood or probability against the category of consequences severity.
3. Risk Based Internal Audit Plan
A detailed audit plan will be drafted in discussion with the management and area to be prioritized depending upon the risk category & also the nature of the function. Broad areas to be covered;
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Revenue
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Procurement of Goods / Services
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Inventory
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Logistics
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Information Technology
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Finance
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Fixed Assets
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Statutory Compliances
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Admin & general operations, etc