Is Audit Season approaching? No worries! We are here with this ultimate checklist to navigate your internal auditing process smoothly and confidently.
From a mere compliance check to a strategic decision-making process.
Internal auditing has evolved from a mere compliance check to a strategic decision-making process. From gathering all your financial records to validating strong internal controls and maintaining transparency with your auditor & getting everything organized is key.
What is Internal Auditing?
Internal Auditing is the process of verifying an organization’s internal controls, corporate governance and accounting processes aimed to improve operational procedures, risk management, and internal controls & ensure compliance.
The Internal audit process doesn’t have to be a mundane document verification. When done right, it will be an incredible opportunity to recognize your business strengths and identify areas of improvement.
It is very important to undergo the process with a calm and professional attitude to understand your business can be as reputable and transparent as it comes.
Checklist for Internal Auditing for Businesses in UAE
Here’s your checklist for a robust Internal Audit:
- Setting Clear Objectives
- Defining the Scope
- Gathering Documentation
- Creating an Audit Plan
- Examining Internal Controls
- Assessing Risk Management
- Evaluating Operational Efficiency
- Ensuring Compliance
- Review Audit Findings & Publishing Report
- Follow-up Audit Findings
Setting Clear Objectives
Internal Auditing objectives must answer the below questions:
Why is your business required to conduct an audit?
What are the goals of this internal auditing process?
What is the primary reason for performing the audit function?
This will help you understand the purpose of the audit and identify the area of focus.
Defining the Scope
For defining the scope of the audit, it is important to clearly determine the area of focus such as the processes, records or systems that will be audited.
All the aspects of your business such as internal controls, compliance with regulations, operational processes and accounts or financial records could be opted for the audit.
It is also very crucial to consider factors such as the time, location departments, or specific components that are related to the auditing process.
This scope of the internal auditing process will be used as a reference throughout the auditing process.
Gathering Documentation
The Next step is to gather all the information and documents related to the area that is subject to the audit.
Be sure to provide all the details to your auditor for a smooth internal auditing experience.
- Bank account information used for business purposes
- Transactions Evidence including solicitations and purchase bills
- Payroll Reports
- General Ledger
- Trial Balance of the Company
- Resource Register
- Loan Documents
- And any other legal documents related to your business.
It is vital to provide all the supporting documents for an efficient audit process.
Trust your auditor to a certain degree.
That’s why it is crucial to choose the best auditing partner in the UAE. By doing so, you can expect your auditors to only do the right thing for you in every situation.
Our goal is to uncover & mitigate risks and find opportunities for improvement.
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Creating an Audit Plan
After defining the scope of the audit, you will need a solid action plan to perform a smooth Internal Auditing Process.
An effective action plan for internal auditing should answer the following questions:
- What are the specific areas to be examined?
- What are the types of audits going to be conducted?
- Who are the members of the audit team? And What are their roles & responsibilities?
- What is the overall budget for the audit?
- What is the overall timeline of the audit?
- What information does the company need to provide the auditors?
- What are the key risks and concerns that need to be addressed during the audit?
- What are the procedures involved in the auditing process?
- Was this procedure audited in the past?
- What were the results of the prior audits?
- What is the expected outcome of the auditing process?
A well-organized Internal auditing plan gives clarity and increases confidence in the stakeholders.
Examining Internal Controls
Evaluating internal controls has become a key process for businesses in the UAE. This internal control function helps businesses in the UAE to comply with laws and regulations and prevents risks & fraud.
Internal controls are the procedures, mechanisms, and rules implemented by organizations to ensure the integrity of financial information, boost accountability, and prevent fraud.
Internal controls evaluation is a 5-step process
Assessing Compliance Culture – To understand your employees and the company’s attitude towards compliance.
Analyzing Risk Exposure – To prioritize mitigating risks based on their impact on the business.
Reviewing Controls – To highlight vulnerabilities in the internal control structure or refocus on your business processes that could be enhanced to maximize efficiency.
Evaluating Internal Communications – To evaluate the communication system to ensure reports are accurate and explicit.
Reporting Evaluation – To implement an explicit and transparent reporting structure that gives assurance to your organization.
Assessing Risk Management
Every business faces different types of risk that affect their processes, capital, or profits. As risks evolve, the risk management process must evolve. It’s high time to perform an audit on your risk management processes periodically.
Internal Auditors examine the risk management strategies and procedures your company is implementing to discover potential vulnerabilities and propose powerful mitigation measures.
Evaluating Operational Efficiency
Enhancing your operational efficiency is vital to improve your overall business performance. To achieve higher quality outcomes, you must address and rectify inefficiencies in your business operations.
Internal Auditors analyze your business operations and suggest with their perceptions to improve, reduce cost, and integrate systems.
Ensuring Compliance
The UAE business environment is governed by a bundle of laws and regulations that are subject to constant amendments. To avoid hefty penalties and potential legal repercussions for your business, it is mandatory to perform a compliance audit.
Compliance audit focuses on internal rules, regulations, policies, decisions, and procedures that have been followed by your organization.
KGRN auditors in the UAE have a strong knowledge of the UAE regulatory landscape and ensure that audits are performed under the latest regulations. Contact Now
Analyzing Findings & Publishing Report
The final step is to analyze the findings and prepare a report on the audit results. Audit findings refer to the evidence, criteria, and determinations of the audit.
For preparing the auditing report, it is important to consider the 5 C’s of Internal Auditing
- Criteria
- Condition
- Cause
- Consequence
- Corrective action
From minor issues to major threats, everything will be recorded and disclosed in the report. It covers the strengths, weaknesses, areas of improvement, and compliance with the standards of the organization. With this Internal Audit Report, businesses are equipped to find the root cause of the problems and take corrective action.
Follow-up Audit Findings
To monitor and verify the execution and results of corrective actions that are triggered from the audit findings, a follow-up audit is required. This helps your business to identify gaps and obstacles that are stopping you from improving your business performance.
And most importantly, make sure to record the evidence and feedback of remedial actions as well as celebrate the achievements and success of internal auditing.
Unlock financial confidence & stay ahead with the Right Internal Auditing Services in UAE. Contact for Expert Assistance
The Power of Partnering with Internal Auditing Services in UAE
On-Demand Expertise: Your business financials are audited by capable hands. You will get an opportunity to work with highly skilled auditors with deep knowledge of Internal Auditing & UAE Regulations.
Cost-Effective Solutions: You time and money will be saved instead of hiring a candidate and providing training. You will gain a long-term financial commitment with the right auditing service firm in UAE that offers you a flexible and smooth auditing process and support.
More Freedom, More Achievement – You can just ward off your routine audit tasks to your auditing service partner and spend more time driving growth and innovation.
Compliance and Quality Assurance: You trust an authorized auditing firm in UAE since they will strictly adhere to stringent regulatory standards and quality control measures.
Looking for a future-proof internal audit function that drives strategic value to your business? Let us help you! Uncover, Analyze, and Thrive with the expert auditors in UAE at KGRN!
The End Goal: Don’t just Survive the Audit, Improve
With the right approach, the Internal Auditing process will act as a mirror that provides a self-reflection of your business performance.
Whether they reflect the hidden weaknesses, strengths, or risks of your business, these reflections serve as a guide to get your business to step further.
Take advantage of the best Internal Auditing Service in UAE that helps you diagnose and treat your financial inaccuracies and clarify the path to business growth.
Let’s keep your business on track by ensuring financial integrity and transparency with our expert audit & assurance services in KGRN.
