Internal Audit Consultants in Dubai and UAE

Role of an Internal Auditors in UAE

The primary role of internal audit is to help an entity secure its assets, reputation and sustainability along with ensuring its smooth functioning. However, the function also has several other significant roles in organizations. The Internal Audit function is expected to evaluate risks, monitor and assess controls, ensure accuracy of reporting and improve operations. The internal auditor is also expected to investigate fraudulent activities and assure safeguards to prevent their recurrence, review processes and procedures and offer independent insights and advice to the senior management.

Objective of Internal Audit

Internal audit helps in enhancing the overall governance mechanism of the organization, including the strategic risk management, internal control system & processes.

An effective internal audit function is a valuable resource for any entity that helps them achieve their goals.

Advantages of Internal Audit Services

The Internal Audit department is one of the most significant pillars of an organization and as such, it requires highly skilled internal auditors who can function without any bias and internal conflicts. Many entities find it difficult to maintain an in-house internal team and hence plan to outsource.

Outsourcing the Internal Audit function has several significant benefits which include the following.

• Reduces cost and time
  An in-house internal audit team is more expensive than an outsourcing company. Outsourcing helps entities reduce cost, along with giving employees sufficient time to focus on the core activities of their business.
• Unbiased Appraisal
  An external party can give better insights about the performance of a company, compared to employees within the firm. There are fewer chances for conflict, ego and competition, and it can also lead to novel ideas & proposals for enhanced performance and alleviation of risks & control.
• Imparting industry best practice
  Independent consultants have a better understanding of issues, be it industry specific or general. They would have helped numerous companies with their internal audit function and hence will have an upper hand in analyzing and solving issues.
• Functional Diversity
  An outsourced internal audit team is likely to have domain experts from diverse fields such as Finance, Operations, Human Resources, IT and even Strategy. People with diverse skill sets are an asset and it is usually rare to find it in a relatively smaller internal team.
• Assures independence
  An internal audit team within the organization might feel less empowered when compared to an outsourced team, as the possibility of management not giving heed to their opinions are quite high. They can’t operate independently and according to their will.

Internal Audit Services we offer

• Outsourced Internal Audits
• Co-sourced Internal Audits
• Risk Advisory Services
• Internal Audit Resource Outsourcing
• Internal Control Systems
• Compliance Audits
• Preparation of Risk Registers
• Internal Audit Training

We offer Internal Audit services across diverse sectors in UAE

Real Estate Company

Hospitality Industry

Retail Industry

What makes HLB HAMT Internal Audit different?

Frequently Asked Questions – Internal Audit

1. How does a company in the UAE benefit from Internal Auditing?

   Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. A good internal auditing system ensures better management of your enterprise by improving its governance and risk management controls, while at the same time ensuring that your business objectives are achieved.

2. What are the key objectives of an Internal Audit service?

   A good internal auditing system will aim to achieve:

   • Independent assurance of compliances
   • Risk Assessment and mitigation
   • Process improvement

3. What are the processes followed by Internal Audit Consultants in UAE?

   • Understanding of the organization, the key business objectives, policies, processes, risks, and controls
   • Gathering audit evidence – Inquiry, Observation, Inspection, Vouching, Tracing, Re-performance, Analytical procedures, Confirmation etc.
   • Evaluating the relevance, sufficiency and competence of evidence gathered
   • Data analysis and interpretation – Computerized Audit tools and techniques, Spreadsheet analysis, Statistical analysis/process control techniques, Analytical review techniques, Benchmarking etc.
   • Review of Documentation/Workpapers
   • Data reporting – Reporting test results to Audit Manager, developing conclusions regarding controls

4. What is ‘risk’ in Internal Auditing?

   Risk is the possibility of an event occurring that will have an impact on the achievement of an organization’s business objectives; measured in terms of impact and likelihood.

   • Risk begins with strategy formulation and objective setting.
   • Risk may relate to preventing adverse events from happening or from failing to ensure that favorable events happen.

5. What is the difference between Internal Auditing and External Auditing?

   Internal audit involves a holistic approach to an organization’s governance, risk, processes and control systems. The focus of an internal audit is across functions and not necessarily financial. An external audit, however, pertains to the accuracy of the organization’s accounts and compliance of financial reporting to international standards.

6. How long does an Internal Audit process in UAE take?

   An internal audit could be an ongoing activity for an organization – performed either internally with own resources, completely outsourced to third parties or as a blended activity with both internal employees and external companies. In such ongoing audits, companies prefer to have quarterly audit meetings and report discussions with the management/board of directors/audit committee.

   Though less used, there are alternate approaches also to internal audits wherein the audits are carried out either once or twice a year and findings and recommendations are reported in a corresponding manner. At times, organizations also conduct an internal controls study as a one-time exercise, and this is usually followed by changes to policies, processes or the ERP.

7. Is Internal Auditing a mandatory function in UAE?

   Internal auditing is mandatory for companies operating under-regulated environments – such as publicly listed companies (or PJSCs), entities operating under rules of central institutions (such as entities regulated by the UAE Central Bank or Insurance Authority) etc.

   Internal Audit is not mandatory for privately-owned companies, however, private companies that seek better governance, processes and controls conduct ongoing internal audits and use this function productively.