Internal Audit Services in UAE

Compliance audits verify that an organization respects financial and legal guidelines. HR, payroll, and business reporting may all be reviewed during a combined operational/financial audit. Additionally, pure operational domains such as administration and human resources may be covered.

This stage ensures that the audit includes all critical functions in accordance with risk and industry requirements.

2. Create the Risk Assessment UAE Matrix

The Risk Assessment Matrix (RAM) is used to categorize the risks associated with each process, subprocess, or region under audit. The level of risk is defined by comparing the likelihood or probability to the category of consequence severity.

3. Risk-based Internal Audit Plan

A detailed audit strategy will be developed in consultation with management, with areas prioritized based on the risk category and the nature of the function. Broad areas to be covered (may vary based on the industry and choice of management). Such as: Revenue, Procurement of Goods and Services, Inventory Logistics, Information technology infrastructure, Finance, Fixed assets. Responsibilities include statutory compliance, administrative duties, and general operations.

4. Execute the Authorized Internal Audit Plan

Fieldwork is carried out following the approval of the audit plan, which includes a walk-through, inquiry, questionnaire, and so on. Clients are constantly informed about the audit process and its status.

5. Submit Draft/Final Reports to Highlight Concerns With Risk Rating and Reporting to Management

Once the execution stage is complete, all observations are compiled into a draft report. The risk rating is assigned to all observations under the responsibility of the relevant function. This report is reviewed with management or authorized people to highlight any issues, concerns, or deviations.

6. Follow-up and ATR

The scope of work does not cease with the submission of reports because it is a continual process. The follow-up action taken report (ATR) will be submitted to management on the status of observations and their closure status. Any long-pending observations vital to the business will be brought to the management’s attention to determine the next course of action.

Independent examination and assessment of the organization’s financial and relevant operational activities will be improved if the internal auditor is not affiliated with the organization and is independent.