What is an internal audit?

The internal audit is a system of internal control of the company and consists of a set of measures, policies and procedures established in a particular organization to protect their assets, minimize risk, increase efficiency of business processes and optimize and monetize ultimately, the business.

As a company grows in volume, internal auditing becomes apparent. The reason? The more the company grows, the more impossible the management is to control each and every one of the processes that the company uses.

Thus, through internal auditing, it is easier for management to verify that all the functions in each of the departments are being carried out, objectively analyzing them and taking measures when necessary.

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What is an internal audit for in an organization?

The internal audit allows carrying out an updated follow-up of the management of a business, as well as a method of control of financial management.

Thanks to the performance of an internal audit, the percentage of probability that an organization will increase the achievement of its objectives is very high. And because? Well, because an internal audit is used to detect scams, fraud, and any diversion of money or goods, among other things.

Internal audit is precise to detect any deviation in an organization and to be able to correct it as quickly and efficiently as possible.

The internal audit will be carried out by people with sufficient technical knowledge, such as auditors or a person from the company itself with sufficient professional capacity to do so. They must carry out their work in an impartial, independent and objective manner and always keeping under professional rigor.

Likewise, the organization must provide the auditor with all the information and files necessary to carry out an investigation as accurate as possible, thus allowing a faithful and truthful evaluation of what really happens in the accounting and financial field of the company.

Objectives of the internal audit

Internal Auditors in Dubai becomes necessary as a company grows. Otherwise, the review and control by management would be very complicated and the analysis and study of the company’s progress would possibly be done in a way that is not very objective and far from reality.

An internal audit must be done based on a plan previously drawn up and designed, based on the policies and procedures of the company in question. Likewise, the internal audit is aimed at complying with the following points:

• To what extent are the plans and procedures derived from management fulfilled.
• Review and evaluation of the application of operational, accounting and financial controls.
• Carry out an inventory control so that all the assets that the company owns are registered protected and subject to the pertinent regulations.
• Verify and evaluate the accounting information that it is truthful and responds to the economic reality of the company.
• Carrying out special and extraordinary investigations that the management requires.
• Preparation of audit reports on the irregularities that can be found at the end of the investigations, also determining possible recommendations to solve them.
• Monitoring of compliance with the recommendations determined in reports and audits