Internal Audit for UAE PJSC Companies
The Securities and Commodities Authority (SACA) in the UAE was founded in the year 2000 with the primary objective of supervising and monitoring the stock markets. As such, it has been a strong focus area of the SCA to strengthen the legislative structure of Public Joint Stock Companies which are listed in the market. This is done by issuing such regulations and instructions that ensure the development of the organizational and supervisory framework of the joint-stock companies and other companies operating in the securities field.
Article 14 of the SCA regulations mandates the Boards of PJSC companies to take all necessary procedures to ensure an efficient internal auditing of workflows in the Company.
- Setting a clear policy approved by the Board to ensure efficient internal auditing of the workflow in the Company
- Setting written and detailed regulations and procedures for internal auditing, which determines the duties and responsibilities in compliance with the policy approved by the Board and the general requirements and objectives stipulated in the applicable legislation.
- Establishing an internal auditing department to follow up compliance with the applicable laws, regulations, resolutions, and requirements of the supervisory bodies, the internal policy, regulations, and procedures set by the Board.
- Setting written procedures to manage and address conflict of interests and deal with potential cases of such conflict for Board members, the Senior Executive Management, and shareholders.
- Establishing an internal auditing department to follow up compliance with the applicable laws, regulations, resolutions, and requirements of the supervisory bodies, the internal policy, regulations, and procedures set by the Board
Further, the Board, through the Audit Committee should examine internal audit reports and follow up the implementation of corrective actions of the observations contained therein. Further, along with the internal auditors, the Board should establish controls that enable the Company employees to report confidentially on any potential violations in the financial reports, internal auditing or other matters, and the steps to ensure making an independent and fair investigation of such violations.
Internal audits for PJSC companies are usually co-sourced and led by the head of internal controls. The co-sourced internal auditors bring in their own areas of expertise such as Best practice references, Impartial Assessments, Functional Expertise, Cost-effectiveness and Enhanced Risk Management capabilities
Audit Committees are increasingly concerned about assessing and managing risks. Inside reviewers can shift their focus to solve these concerns while also increasing their critical value to the organization.
HLB HAMT’s approach can be readily tailored to an organization’s specific requirements and our teams operate according to the comprehensive audit plan which is approved and periodically reviewed by the Audit Committee. Our teams also undertake other key related activities including risk management activities, compliance tasks as well as special investigations if requested by the Audit Committee.
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