Guideline to perform an error-free Internal Audit

 

Internal audits refer to independent services to evaluate an organization’s internal controls, corporate practices, and processes. It adds value to and improves a company’s/ organization’s operations. Internal Audits should be done with clarity and care to ensure success. The internal audits include evaluation of its controls, including its corporate governance and accounting processes. These audits ensure – compliance with laws and regulations; maintain accurate and timely financial reporting and data collection. Therefore, it’s imperative to ensure that internal audit mistakes get avoided.

Internal Audit firms in Dubai, are the key pillars of good governance. These firms play an important role in helping the management make correct decisions by ensuring top management and stakeholders have an independent view of understanding if the company has an appropriate risk and control environment. At the same time, these firms act as a catalyst for a high risk and compliance culture with conformance effectiveness within an organization.

Internal Audit plays a pivotal role in assuring the board of directors that the organization is governed effectively. Thus, helping to improve the management and accountability, both financial and non-financial.

For the success of internal audits in Dubai, the best auditors in Dubai give importance to strong technical and theoretical aspects. They work with several clients that help in better understanding various businesses and processes. A better understanding of business creates vision and instinct. Establishing a good connection and linkages with the organization is inevitable. The best auditors are also good team players and maintain good relations with the client. By automating internal audits and assessment workflows, professional auditors can help to carry out the task effectively.

To avoid internal audit mistakes, the following guidelines may prove helpful-

1. Scope Out Your Audit

To achieve a successful audit process, one must determine and establish which parts of infrastructure should be included in the audit and which part can be included in the subsequent audit. Certainly, the first mistake that one can make is to include every asset for the audit.

Make a clear inventory that should be followed while carrying an internal audit for the ease of the auditing process.

• Keep the big picture in mind

The auditor must understand the business and industry. Report up-to-date numbers to your audit committee by creating dashboards that automatically update-allowing you to get back to analysis.

• Avoid Massive Audit Reports

Apart from an accurate audit report, it must be systematic, concise and a clear report that will help the management to analyse and make improvement plans for the company. The audit report is prepared with utmost care after a lot of fieldwork and thus helps to make necessary changes in the course of functioning. The core issues can be addressed on the first page or two with extensive detailing in the latter part of the report.

• Inadequate staff training

Usually, a company’s internal audits are carried out by auditors employed in the organization. Unless the auditors are adequately acquainted with the latest industry trends, tools, and practices, they will be unable to carry out the audit at its full capacity. To advance into internal audit management require a deep understanding of a wide range of businesses and industry practices. Be responsible for the training of auditors and consider investing in training. The planning and preparation for the internal audit will help the auditors to be better equipped to handle various processes and manage data.

• Neglecting to maintain continuous communication

Ensure the audit team is part of the decision-making process. The audit committee should be involved in regular communication with the rest of the staff and not treated as special operators. This helps them to be aware of any major changes taking place. This will go a long way towards ensuring the veracity of the company’s next audit.

Internal audits also serve as a launchpad for any future audits that a company might undertake externally. These Audits are also important steppingstones for achieving compliance requirements.

Being successful not only means doing things well, but it also means not making big mistakes. You can avoid internal audit mistakes to a large extent with diligent care and a little bit of resourcefulness.

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