Why Internal Auditing is Equally Important to SMEs as it is to MNCs?
Every company needs to analyze the efficiency of its practices in a bid to get an overview of the company’s financial status. An unbiased evaluation of the company’s business functions is required to improve its financial status. An audit firm in Dubai analyzes the company’s business practices in an unbiased way and report if there are any risks to the company’s financial status.
Every big company (MNCs) operating in Dubai, UAE either have an internal audit department or outsource the services of auditing firms to get the internal auditing done. However, the big question is whether the Small and Medium Enterprises (SMEs) need to outsource auditors in Dubai, UAE to carry out internal auditing? The size of the company doesn’t matter as far as the need for internal auditing is considered in the UAE. In UAE, internal auditing is equally significant for SMEs as it is for the big Multi-National Companies (MNCs).
Why is Internal Auditing Important for a Business?
The purpose of an internal audit is to give independent assurance to a company to ensure that its risk management, governance, and internal controls are performing effectively. Internal auditors tackle issues that are fundamentally significant to the survival and growth of any company.
Internal audit plays a big part in fraud prevention in companies. Deceitful practices and other forms of irregularities can be detected and curbed with a recurring analysis of an organisation’s operations and an intense system of internal controls. Periodic analysis of a company’s operations and maintenance of rigorous systems of internal controls can detect and prevent various forms of financial fraud and other accounting loopholes.
How SMEs can improve business operations by hiring internal auditors in Dubai, UAE?
Every company starts growing by identifying and rectifying the mistakes that it does at the beginning stage. This is a crucial business mantra that is especially true for SMEs. For the rectification of mistakes, it is important for businesses to conduct the audit with the help of professionals who can provide the companies with a transparent picture of their business.
Internal auditors can help SMEs in Dubai, UAE in the following areas:
1. Identifying Weaknesses
SMEs can identify various problems within the organization and its financial statements with the aid of reliable auditing services in Dubai, UAE. The internal auditors can diagnose the various loopholes prevailing in the internal control system to curb the vulnerability of fraud and better control of every department in the company. Businesses can get expert help from auditors in getting better suggestions for improving on such vulnerabilities of accounting systems.
2. Internal Assessment & Progress
Audit services assure the directors of both SMEs and big companies about their company’s progress if they themselves are not involved in the accounting functions of a company. An internal audit done by a well-known firm can help SMEs cut the risk of poor accounting.
3. Prevention from Frauds
Fraud puts a dent in the performance of SMEs, wastes money, and inflicts damages on the organization, its reputation, and its competitiveness. Fraud may expose businesses to many risks and affect the trust of investors. Internal auditors play a crucial role in ensuring that businesses are not vulnerable to fraud.
4. More Internal Controls
Businesses can gain valuable advice from auditors that lead to the efficient and effective operations of the companies. The best auditing services in Dubai, UAE can help the companies tighten their internal controls thereby reducing the risk of fraud. Having internal auditors in Dubai help SMEs to comply with local and international law and regulations.
5. Increased Credibility
Conducting internal audits is the best way to increase the credibility of the business. With the help of expert auditors, companies in Dubai, UAE can prove that the investors can rely on them. Thorough internal auditing will help the business if it is planning to sell shares to people in the near future. Business envisioning their growth must conduct auditing by hiring the best auditing services in Dubai, UAE.
Why Should a Business Opt For Internal Auditing Services In Dubai?
UAE is one of the top business hubs in the world that is home to various businesses, both small and big. Every such business needs to conduct regular internal audits in a bid to identify weaknesses in the system, tighten internal controls, and evaluate risks. Hiring the services of internal auditors in Dubai, UAE is the best decision to improve the credibility and reputation of the business.
Jitendra Chartered Accountants (JCA) is a Dubai based chartered accountants firm, equipped with an efficient team of internal and external auditors who can perform a financial audit, statutory audit and due diligence audit to ensure that the companies are meeting the regulatory requirements and their business processes are designed effectively and operating efficiently.