Why Internal Audit is Needed for Business?
The word internal audit itself might raise a question for business owners? Is it necessary to conduct internal audit? Is it worth to use resources for doing internal audit?
There is no mandatory requirement of statutory audit in UAE. Internal audits are conducted to evaluate the effectiveness and enhance the quality of core functions like risk management, control, governance and accounting processes. Although an internal audit isn’t a mandate for every company, it is a feather in your cap and helps in ensuring best practices and reassures customers of efficient services. internal audit in UAE is an objective evaluation of an organisation’s internal controls to effectively manage risk within its risk appetite. Companies are looking for risk-based internal audit plans to focus on critical areas.
This is why you should consider an internal audit for your business:
Provides Insight
Timely evaluation of procedures and processes is necessary to ensure that you are on the right track. However, evaluating your business yourself might lead to a conflict of interest. Internal auditors must be independent to ensure that the audit is unbiased and should not have operational responsibilities related to the company. In smaller organizations, trained employees can conduct audits of other departments and submit the reports to the senior management.
Improves Efficiency
By conducting an audit, you can ensure that your company’s procedures are in line with your policies. This audit can help in understanding the drawbacks of the system and rectifying them wherever applicable.
Assessing Risks
A risk assessment helps stakeholders understand and mitigate risks before they happen. Risks assessments help in identifying risks in the system and implementing a risk assessment program.
Ensures Compliance
An internal audit ensures that the functioning of your company is in compliance with the relevant laws. Strict compliance with the laws helps in building trust in the minds of customers and other stakeholders.
Formalizes systems
Internal audit helps in formalizing of systems and processes across the business. You can make use of your resources optimally and derive processes that makes your work smooth and easy.
Our Internal Audit process are customized considering the size and needs of an organization, whether the need is overall execution of internal Audit process or assistance for existing internal audit function. Horizon Biz Consultancy conduct internal audit process through mix of traditional approach as well as time approach to avoid any discrepancy in Audit process.
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