How do Internal Auditors in Dubai add value to business
How do Internal Auditor in Dubai, UAE add value to the business
Have you ever considered how internal auditing enhances an organization’s value? As you may be aware, internal audits are carried out by an organization’s internal bodies to confirm the accuracy of its governance structure, risk management, business control procedures, and general operations system—all of which help to improve business performance. In the end, it is all about bolstering the system of internal controls and keeping a close eye on accounting records. Internal audits are carried out with a thorough awareness of the systems and corporate culture. Internal audits provide effective and efficient control methods that help to reduce risks. Main priorities of Internal auditor in Dubai include conveying opinions accurately and clearly.
Establishing control mechanisms
Internal audit assists in putting in place a framework that controls business processes and, as a result, guards against fraud and mistakes-related losses. These controls are developed and put into place in a number of processes, which include:
• Clearly define the internal control system’s goals.
• Establishing a suitable control environment and making sure staff members are knowledgeable about the control processes
• Evaluate risk: Recognize possible issues before they arise and address them
• Execute Control Activities: Examine every process to make sure that current
• There are no unnecessary or pointless controls, and the controls that are in place are enough.
• Share Information: To assist top management in making decisions that will improve efficiency, compile thorough reports on the business’s performance.
• Regularly monitor, oversee, and test control procedures to make sure they are operating as intended.
Internal control practices will help the company achieve financial discipline by making sure that:
• Effective operations and a defined route to achieving corporate goals
• Observance of company policies and procedures by staff members
• The faithfulness, accuracy, and dependability of financial data
• Fewer or non-existent emissions, mistakes, and defects within the company
• Stop employee fraud or theft.
• Preserves corporate assets
Separation of Duties
Each employee’s responsibility is clearly defined by the practice of segregation of duties. This control system divides the work among multiple employees rather than giving all bookkeeping, auditing, and accounting responsibilities to one individual.
This keeps employee theft and fraud at bay since it becomes more difficult for a single employee to conduct fraud the more divided the duties are. By comparing and resolving data between several employees, it also makes it more difficult to conceal transactions and helps identify inaccuracies. Finally, it also lays out a precise organizational hierarchy that enables staff members to understand exactly who in the company they are accountable to and who has control over them.
Management Information System (MIS)
The purpose of the MIS report is to monitor and regulate specific business factors, including corporate revenues, by outlining all the important company criteria and comparing them with business performance. Senior management interacts with several departments in order to prepare this report, which significantly strengthens the connection to upper management.
Internal audit's importance in combating fraud
Internal auditing is a process that introduces ethics and integrity into the internal business processes of the company. Because of its ability to reinforce business control measures that are intended to reduce fraud, it is regarded as the best anti-fraud control mechanism. An inquiry into potential fraud will be conducted if this method finds evidence of it. According to the internal audit fraud risk policy, any unusual or suspicious action involving:
• Workers
• The Directors’ Board
• Advisors or sellers
• Other parties connected to the company
Fraud can be stopped by internal auditing in:
• Annual Revenue of Company
• Misappropriation of Assets
• Fraudulent Sellers
• The Fraud of Accounts Payable
• Fraud involving payroll
• Corruption, bribery, and many other things
IBR GROUP Accounting and Auditing Services
IBR GROUP is a well-known accounting company that offers businesses flawless accounting and auditing services in Dubai, UAE. We have thoroughly examined both internal and external audits for a number of companies, thereby boosting output. Internal auditing, VAT consultancy, accounting and bookkeeping, accounts outsourcing, CFO, and tax-free consultation in Dubai are the areas of expertise and experience of our seasoned and knowledgeable experts.
I hope it is now evident to you how internal auditing benefits companies. Please get in touch with us if you have any questions about internal audits or any other type of financial services. To allay your concerns, our professionals provide a free one-hour consultation!