Having an adequate inspection and control system is
the key to meeting the organization's objectives.
Introduction
Having a control system within risk management
allows us to monitor and monitor the correct operation of the processes. There
are a large number of audits , but the internal one focuses on meeting the
organization's objectives. This is an activity that is done independently in
order to generate value and improve business operations.
Sometimes it is carried out by agents external to
the company, better known as auditors who are in charge of carrying out an
evaluation of the organization, to verify if the management system is adequate,
efficient and effective.
In the following eBook you will find all the
information related to internal Auditors in Dubai, the types that
exist, its mission, the principles on which it is based, the stages and phases
that are carried out, and who is responsible.
What is
internal audit?
It is an evaluation or an examination carried out
by organizations to verify whether the operation of the different areas is
correct , in order to guarantee the proper functioning of the established
controls.
According to the Institute of Internal Auditors of
the United Arab
Emirates. "It is an independent activity that takes place
within the company and is aimed at the review of accounting and other operations,
in order to provide a service to management."
This is given by the need for organizations to
maintain control in order to make their operation more efficient. In this case,
a review of the internal control system is carried out , as well as the
policies and procedures defined to protect business assets , in order to avoid
fraud, sabotage, and increase operational efficiency and effectiveness.
When companies begin to have notable growth, it is
when the appearance of internal auditing is most necessary, since it becomes
almost impossible to have direct control of all operations.
“Internal audit is an independent and objective
assurance and consultation activity, designed to add value and improve the
operations of an organization. It helps companies meet their goals by providing
a systematic and disciplined approach to assess and improve the effectiveness
of risk management, control and governance processes,
Goals
The main objective of the internal audit is to
comply with the functions, activities, responsibilities and processes
established within the company's policies.
On the other hand, verify that the accounting
information is reliable and monitor that the control system is working
properly. This must start from a previously established plan, which highlights
the policies and procedures to be implemented.
Fundamental
principles
These are in charge of generating the effectiveness
of the internal audit . In order to have an adequate inspection system, it is
important that all the principles are integrated and operate at the same time
within the organization.
1. Demonstrates
integrity: The integrity of internal auditors establishes trust and,
consequently, provides the basis for trusting their judgment.
2. Demonstrates
competence and due professional care: The Internal Auditor is always trained to
perform his job and profession in the best way possible.
3. It
is objective and free from influences (Independent): There should be no
coercion or limitation for the development of the internal audit, all in order
not to lose objectivity and the proper focus that the audit should have.
4. Aligns
with the strategies, objectives and risks of the organization: Every internal
auditor adapts to the needs and policies of the organization.
5. It
is appropriately positioned and has adequate resources: It has all the
necessary resources, giving the auditor access to everything essential to carry
out the audit.
6. Demonstrates
quality and continuous improvement: The auditor never limits himself, always
gives feedback on his learning and constantly seeks change and internal
improvement.
7. Communicates
effectively: The internal auditor has the ability and ability to work as a team
and use the right means of communication to effectively develop his audit.
8. Provides
risk-based assurance: The auditor focuses his work on a risk-based audit, since
he understands the importance of auditing risk-focused processes (risk plan of
the organization); thus achieving an effective audit.
9. Makes
deep analysis, is proactive and future-oriented: It is always at the forefront,
since it is known that an auditor does not wait to adapt to change, but rather
anticipates change and generates change, demonstrating and developing their
ability to always orient themselves to the future through your analysis and
observations.
10. Promotes
organizational improvement: The internal auditor is a generator of change,
contributing through his audit a true continuous improvement for the
organization.
Audit plan
Knowing how to carry out a risk-based audit process
will help you identify and take action regarding technical and organizational
risks that may arise from the external, internal, technical or human part.
Below we share the step by step you can follow to carry out the annual audit
plan stage.
It is no secret that audits with experts in
protection systems and comprehensive risk management are essential to obtain an
objective overview of the state of the organization.
1.
Determination of the audit universe
Depending on the stages and phases of the internal
audit , it is necessary to carry out a general analysis of the organization to
be audited. That way, the audit team can have a better understanding of how the
processes work and what the entity's objectives are.
Specifically, the audit universe refers to the set
of areas of the organization that are susceptible to auditing (human talent
management, financial management, technology management, commercial management,
communications management) in order to provide adequate assurance to each one
of those business functions.
2.
Establishment of the internal audit plan
In line with the stages and phases of the internal
audit , the plan should be based on the data collected in the first step, and
contain information such as: objectives, scope and criteria of the audit, units
and areas that will be audited within the company, officials in charge of the
quality of the processes, priority aspects, time and duration of the
inspections, among others.
The work plan should also be based on documented
information and feedback from senior management and the board should be taken
into account. The auditor who coordinates the implementation of the annual plan
is in turn responsible for communicating the resources required for the
internal audit and the possible impact in the event that these resources are
limited.
To carry out the annual plan, it is necessary to
evaluate the level of risk inherent in the processes, identify the requirements
of the audit committee and management, know what the legal requirements are for
internal audit and document possible findings and opportunities for improvement
that arose in plans. From earlier times.
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3. Annual
audit plan vs. resources
Depending on the projects that arise in the plan,
it is necessary to allocate the human, financial and time resources that will
be required to carry out the plan. According to the availability of these
resources, it will be possible to choose the projects that can be attended,
according to the level of priority.
4.
Communication and approval of the plan
Finally, the annual audit plan must be presented to
senior management in order to obtain final approval from the board of directors
or the audit committee. In this presentation, it is necessary to demonstrate
that actions were taken in case of resource limitation.
In turn, we advise you to inform senior management
and the board about the Internal Audit and control system reviews in Dubai work that
has been rescheduled, what the compelling reasons for this change are and what
is the degree of risk associated with the rescheduled work.
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