The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
In the fast-paced UAE business world, companies are always striving to improve and stay ahead of the game. To meet the expectations of stakeholders and navigate dynamic market patterns, internal audits are a valuable tool. These audits help businesses in the UAE to maintain compliance, protect their data, and achieve their performance targets. Furthermore, they identify any potential hazards in the industry. By carefully examining the results of the audit, companies can pinpoint areas for growth and make adjustments that lead to success. From internal audit services in the UAE to the role of internal auditors in Dubai, we will be discussing everything you need to know about internal audits in UAE.
Auditing: Internal vs. External
Unlike external audits, which are mandatory and focus on the fair presentation of financial statements for stakeholders, internal audits are flexible, risk-based, and focus on improving efficiency across all areas of the business (finance, operations, IT, etc.). The primary aim of an internal audit is to educate employees on how to improve efficiency and reach professional goals. Internal audits also focus on identifying security flaws and quickly mitigating potential risks.
Objectives of Internal Audit
Internal auditing in the UAE aims to assess and improve the effectiveness of an organization's governance, risk management, and control processes. Its ultimate goal is to support management in carrying out its responsibilities through objective analysis, recommendations, and observations on various aspects of business operations. The purpose of internal auditing is to assist in improving the overall performance of an organization.
Scope of Internal Audit
- Review each control and analyze its costs and benefits.
- Evaluate the existing system of controls to ensure that it aligns with the organization's structure.
- Institute a productive internal control environment
- Checking the accuracy and truthfulness of financial and operational information, as well as the methods used to record and report that information.
- Reviewing how assets are being protected and ascertaining that they exist.
- Determine the flaws within the functions of the business
Role of an Internal Auditor
Internal auditors in UAE play a crucial role in organizations by engaging with senior management and stakeholders to provide insightful recommendations for enhancing organizational performance in their meticulously prepared audit reports. While internal auditors are knowledgeable about the company's operations and history, it is often recommended to appoint an external auditor to eliminate any potential bias. These impartial auditors are like astute investigators, controlling and assessing risks more effectively than their internal counterparts, ultimately ensuring that the audit process is objective and unbiased. The duration of an internal audit is dependent on the size and scope of the organization. Regardless of its length, the results are invaluable as they can uncover inefficiencies and areas of improvement within the organization.
Internal audit firms in UAE
Internal audit firms scrutinize internal controls, processes, and risks. Their primary role is not to issue an opinion on the fairness of financial statements. The objective of an internal audit is to provide assurance on governance, risk management, and control processes, not the accuracy of the financial statements.
They also meticulously plan and perform audits to obtain reasonable assurance regarding the accuracy of financial statements. They leave no stone unturned in their pursuit of ensuring that the statements are free from material misstatement, whether caused by error or fraud. Such a commitment to precision and integrity sets these audit firms apart and reinforces their reputation as trusted financial watchdogs.
Why choose Reyson Badger?
Experience the best internal audit services in Dubai with Reyson Badger, a leading audit firm that offers a comprehensive range of auditing solutions. Our team of highly qualified auditors possesses an in-depth knowledge of the rules and regulations that must be adhered to during the audit process. We strive to deliver top-quality services that provide management and the Board with assurance that governance, risk management, and internal controls are effective and functioning properly. Trust us to help you mitigate risks, identify cost-saving opportunities, and enhance your business performance.
