Essential Checklist for the Internal Audit of a Company in 2022
Carrying out an internal audit is essential for a company to measure its level of compliance with external and internal standards. By preparing a checklist with the best internal audit firms in Dubai, small business owners can regularly ensure their company’s compliance with the relevant policies and procedures. The results of the internal audits raise red flags on potential non-compliance issues, enabling businesses to take corrective action without involving regulators.
However, businesses need not build an in-house audit department to carry out an internal audit. You can outsource it to firms providing internal audit services in Dubai. Companies can make the internal audit process can be made effective by creating a checklist. In this article, we will take you through the essential internal audit checklist every company should have in 2022:
Understand the Internal Audit Process
Internal auditors in Dubai usually begin the process by choosing a department in your organisation and understanding its internal processes and controls. They will conduct fieldwork testing, monitor department staff over identified issues, review the company audit report with senior managers, prepare an official audit report, and follow up with managers and the board of directors as necessary to make sure recommendations are implemented accordingly. The company needs to understand the process to make the internal audits effective.
Understand the Types of Audits
The company should have a list of business functions that need to be audited. All companies must audit their management function to make sure that their business plans are robust and strategic. By auditing its operations, a company can ensure its employees adhere to consistent procedures designed to maximize performance. The company needs to audit its financial practices as well to safeguard against fraud. It is advisable to repeat the internal audit process periodically to ensure that the company remain compliant over time. Outsource the internal audit requirement to internal audit firms in Dubai for best results.
Management Audit to Validate Company’s Strategic Plan
Conducting a management audit enables the company to validate its structure and strategic plan. Internal auditors in Dubai will review the company’s goals and objectives to ensure that the company’s framework is aligned with its goals. Moreover, each employee’s goal should relate to the overall goal of the company. Audit firms in Dubai will also review the company’s organizational charts to check whether the employees are accountable to their managers for their performance and that the managers are accountable to the owner.
Operations Audit to Measure Performance
Audit firms in Dubai will carry out an operational audit to measure the performance of the company’s core function. Auditors will also measure how effective is the company’s sales staff and whether they periodically update their knowledge of the market, the competitors and the technology relevant to the company’s business. Key elements of the operational audit checklist include the following,
- An assessment of the company’s on-time delivery of goods and services
- Whether the company has adequate contracts in place with its vendors
- How the company trains new employees, and how it validates that the training is effective
- How the company maintains relationships with its customers and so forth
Finance and Regulatory Audit
A financial audit must be carried out to check the company’s compliance with regulatory requirements such as corporate governance and tax filings. The auditor will verify whether the company has obtained mandatory licenses and permits to carry out its business. The company’s accounts will be audited to ensure that the business records and accounts are not mixed up with the personal records and accounts.
Auditors will also check whether the accounting system contains accurate information supported by source documents. During a financial audit, the internal auditors in Dubai will also verify whether the wages of each employee are being calculated accurately and whether the company provides the promised benefits. The finance audit is also essential to ensure the company makes prompt payments for taxes and insurance.
Outsource to the Best Internal Audit Firms in Dubai, UAE
It takes a lot of time and money to build an internal audit team but outsourcing it to the best internal audit firms in Dubai is a better way to ensure your internal audit functions are effective. Internal audit firms such as Jitendra Chartered Accountants (JCA) can assess and assure the organization’s risks. JCA is one of the leading providers of internal audit services in Dubai with more than 20 years of experience.
We have a team of highly qualified auditors in Dubai who can provide you with effective internal audits. Apart from audit, JCA also offers bespoke services such as accounting, corporate tax advisory, VAT compliance, Economic Substance Regulation (ESR) services, and Anti-money Laundering compliance services. JCA can help you achieve business success by ensuring that your internal processes and controls are in place.