Companies in Dubai and UAE in general depend on their IA policies and internal audit process to identify those metaphorical icebergs that threaten the company’s side. If internal audits don’t provide the intended insight and direction, your company could suffer serious consequences. While it is unlikely that your company will be bitten by a hungry shark or eat colleagues, the consequences can have a long-lasting negative effect on your business. How audit firms in Dubai will help you.
This guide features a list that may indicate that your internal audit may need our assistance.
Assessment of Missing or Spotty Risks
The control environment is a collection of processes, standards, and structures. They provide the foundation for internal control within the organization. It must be used in conjunction to cover as much ground as possible. A single element or mechanism in a controlled environment is not sufficient to cover all aspects of the organization. Therefore, it is important to use a multilayered approach for complete risk assessment every year.
Your current control environment may not be being reviewed regularly for completeness. This could indicate that it lacks the checks-and-balances approach necessary to ensure thorough risk assessment procedures. This multilayered approach is difficult to implement, but it’s worth the effort. While patching up individual problems may be a good way to fix them, it will not address the larger systemic issues that could affect the stability of an entire organization.
Additionally, if A Dubai, UAE company lacks the staff or time to invest in a more comprehensive environment for control, items such as safety standards, fraud, department internal audits, and industry compliance will not be given sufficient attention during the audit process.
This indicates that the certified internal audit in Dubai is having difficulty meeting its current responsibilities. They are also not identifying any gaps or mitigating risks. Audits and controls in other company areas should be carried out as companies grow. This will ensure a high level of thoroughness and corresponds with corporate growth. It’s possible that your team is not evaluating these controls.
Audit Reports have Memory Loss
Internal audit function is not a static endeavor. Audits must be flexible and draw on the insights from previous audits. Failing to do this increases the chances of missing opportunities and new growth areas. It is also a sign that you are not integrating any suggested process improvements. This could indicate that your department is not adequately staffed or unable to look at other approaches.
Insufficient Flowcharts, Narratives, And Checklists
Effective internal controls can only be maintained if you have a good understanding of the control systems. Process narratives or a combination thereof can be used to document and clarify this understanding flowcharts.
If process narratives and flow charts aren’t regularly updated or developed, it could indicate that there are not enough walkthroughs. This is crucial for establishing the reliability of internal control procedures. It is much more difficult to monitor and maintain effective internal controls systems if flowcharts or narratives are not maintained.
Your IA Department Isn’t Liked or Respected
Any movie or show that deals with high school or junior high has at least one scene where the unpopular student is eating lunch alone in the school cafeteria. Sometimes this is a cheap plot to get sympathy from the audience. Other times, it’s just the character being generally unlikeable.
Your internal auditing department may be eating by itself in the cafeteria, or at least in the workplace. Your IA department must collaborate well with all departments in the organization, particularly accounting.
These issues are often caused by inefficiency, ineffectiveness, or excessive finger-pointing. Internal audit service UAE department is an essential pillar of your organization. Their ability to work effectively within their organizations and others is a prerequisite for fostering a healthy IA environment.
There Are Differences Between External and Internal Audits
The most obvious sign that an internal audit process needs assistance is the consistent difference between what is found in external and internal audits. This is a sign that there is an overarching cause. It is most likely a failure in the internal controls and not an incompetent or unqualified external auditor.
These sources may be numerous and varied. However, it is possible that any of the points mentioned above could have played a part in discrepancies. This further supports that internal control systems should be continuously monitored and maintained to ensure reliability.
Your audits should be considered living UAE entities. Embark colleagues will tell you that even though a bad audit may feel like a rude awakening, recognizing these signs in your auditing process can help to prevent them from happening again. All of these facets and requirements indicate the value that an IA department can bring to an organization.
An IA department can provide insight into the efficiency and new potential sources of growth. It should also give governance, management, and employees assurance that the organization effectively identifies, mitigates, and manages all risk sources. Financial icebergs and dinosaurs can be detected before they become destructive and ferocious.
