Internal Control Studies in UAE
In an age where rapid customer response, operational efficiencies and competitive pressures are the order of the day, organizations are often faced with the challenge of losing controls over their internal processes. There are several situations where control gaps start emerging, then gradually widen, and eventually loose controls become the norm. Unfortunately, many organizations find the gaps only too late – well after they have caused significant damage.
We help organizations to find the right balance between operational efficiencies and controls by designing customized internal control systems.
Our team uses a three-stage process in order to assess control gaps and design the required controls. This involves an understanding of the existing policies and practices, discussions with the management and staff members, process walkthroughs, transaction testing, assessment of gaps and ultimately the design of detective and preventive controls.
The stages involved and activities in each stage are the following
A. Internal Controls Assessment
- Initial meetings, process understanding & document reviews
- Study of existing policies & processes
- Review of existing practices vs. processes
- Review of existing controls
- Classification of controls based on
- Preventive / Detective
- Manual / Automated
- ERP system reviews
- Assessments of risks and gaps
B. Development of Controls
- Mapping of new business processes required
- Amendments to existing processes/practices and controls
- Finalisation of proposed controls
- Discussions with departments & process owners
- Preparation of implementation plan along with the management
- Roll-out of amended processes
C. Testing and Monitoring
- Preparation of risk-based testing plan
- Design of audit tests to determine compliance to processes and controls
- Performing of the audit tests
- Recording of non-compliance & identifying root causes
- Fine-tuning of controls if needed
- Management reporting & discussions with process owners
- Finalizing corrective actions and follow-ups
- Submission of monitoring reports
Our team at HLB HAMT that handles Internal Control Studies is a diverse mix of professionals with backgrounds in both process design and internal audits. We have expertise in multiple sectors including Trading, Retail, Real Estate, Manufacturing, Professional Services and Money Service Businesses among others.
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