5 Must-Have Elements UAE Firms Should Have for an Effective Internal Audit Program

0
49
UAE Firms

The third line of defense is the internal audit specialists in Dubai, UAE. They ensure that your financial institution’s operations are smooth and compliant. How can you ensure your defenses are sufficient? These essential elements must be present in any internal audit function.

Board Access and Support

In order to fulfill their role as third-line defense, certified internal audit in Dubai teams must be independent and able to objectively assess the operations of institutions. The FI executives report to internal auditors. They are often reluctant to report egregious breaches of the rules or other findings that may reveal poor management. They don’t want to lose their jobs for being the messenger.

The board and the audit committee should give internal audit specialists access to the audit log. The board should review all disciplinary actions taken against auditors and make sure audit reports don’t cause them to lose their jobs.

To get work papers from business units or test samples, internal audit firms in Dubai teams will need the support of both the board and executives. Auditors must communicate well with employees and business units to facilitate audits and reviews. Audits can be viewed as routine health checks, even though some executives might be concerned about their resources. If you stop going to your primary doctor for regular check-ups, the consequences could be even worse.

After completing their audits, internal audit service UAE professionals should be able to directly report their findings and observations to the board. It is important to know the difference between being truthful and giving people the opportunity to clarify their views and respond. This line should not be used for business or other reasons to change an auditor’s assessment.

See also  What to Consider when Choosing the Right Underwear for Your Workouts 

Best Practices for Internal Audit Teams to Track Audit and Findings

Independence

The best audit reports will objectively assess all business functions. It is difficult for most people to objectively evaluate their work due to human nature. Illusory superiority is the scientific term that describes how one judges their work more accurately than peers. Peer reviews and other methods are used to provide objective, new eyes that can evaluate the work of most professions.

Auditing is no exception. Internal audit companies in Dubai, UAE and other financial statement uses who are involved with creating a compliance plan or who create policies or procedures will not be able to evaluate their work as well as those who haven’t spent as much time creating them. Independent auditors are essential to assess the effectiveness and make recommendations.

Risk-Based

Internal audit specialists in Dubai and UAE are required to comply with thousands upon thousands if not thousands of laws, regulations, and internal processes. However, resources are limited. Federal regulators use the same approach for auditors: they allocate resources to areas where compliance is more likely or at greater risk. The risk level should determine the frequency and depth of audits. Audits should be performed in areas of lower risk.

Internal audit firms in UAE shouldn’t waste time reinventing the wheel. Auditors should conduct risk assessments and focus on the most at-risk areas. Then, audit the effectiveness of controls. This is a good idea. If the controls are not in place to reduce the risk, this can have serious consequences.

See also  The Best Neighborhoods in Boston for Raising a Family

A well-designed audit plan should consider previous inspections as well as the findings of inspectors. Dubai UAE auditors should review the activities undertaken to address weaknesses and ensure effectiveness if an independent party has identified them. Auditors may also examine recent enforcement actions or supervisory priorities to identify regulatory risks and areas for scrutiny. Don’t forget to address any complaints and fair lending are two areas where consumer complaints could reveal compliance risks.

Expertise and Training

Internal auditors must be known whether they deal with operational risk, financial statements, or regulatory compliance. Many internal audit compliance officers in Dubai, UAE claim they are better informed than their examiners and have even taught them. Audit teams that aren’t well-informed will lose the trust, collaboration, and buy-in of their audit team.

Your auditors must have the appropriate training and knowledge regarding the process they will be auditing. The relationship between auditors and institutions will be affected and the audit results. 

Even though auditors might not be experts in a specific regulation, they should have access to specialists and tools that will allow them to become experts in that area. That means internal audit specialists must as up-to-date with institutional changes and take advantage of guidance documents as the professionals in their organizations so they can ask the correct questions.

Audits and exams can help you identify weaknesses in policies, procedures, and controls. How do you ensure that your findings are properly managed? This whitepaper will show you how to manage your results.

Technology

Auditors are more efficient with technology, from organizing files to planning audits. Audits can be complex depending on the institution’s complexity and risk profile. They can be overwhelming without the right tools. A partner familiar with the types and requirements of audits required by internal audit specialists like yours is essential. It should be able to support your institution’s operations and encourage collaboration.

See also  How to choose the best housing loan for your needs