Internal Audit services
Internal auditing is an objective assurance and consulting activity designed to add value and improve an organization’s operations. It can help an organization accomplish its strategic objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes. Nam Accountants(Indian CA Firms in Dubai),Internal Audit services help boards and senior executives better manage enterprise risks. Nam professionals help organizations enhance the effectiveness, quality, and value received from internal audit (IA).Nam Accountants understanding of risks and areas of operational improvement — particularly the nuances of specific industry sectors and markets — can help internal audit functions improve their performance and operating efficiency and bring value to their organizations.
However in view of the changed scenario, Internal Audit is conducted for following purposes:
- a) Tool for business performance analysis It can make value addition in a big way by understanding and reviewing operations in-depth and recommending cost reduction in a particular activity or suggesting new ways of earning revenue thereby assisting the top management in achieving its goal of profitability. However definition of value addition can vary considerably from one company to another. For many practitioners value addition may be to improve business but for some, it may be compliance with policies and controls. It depends upon the situation. Hence it is essential to ask the stakeholders and the top management to define it.
- b) Corporate Laws: Most businesses need to comply with various corporate laws as non-compliance shall have adverse implications. Internal Auditor will be playing an instrumental role in bringing about good Corporate Governance.
- c) Risk Management: To review the various types of risks that businesses faces and help the top management in managing and mitigating these risks in a better manner.
- d) Proactive audit: Internal audits are now being conducted in proactive manner rather than reactive. It is very important that internal auditor must conduct the audit either before or immediately after the occurrence of transaction rather than conducting audit of the transaction after certain gap of time.
- e) Use of technology as an audit tool: Technology is now being used in business in order to reduce cost and in order to give better service to the customer. However use of technology also brings with it the challenge of having internal controls in place as we all know that internal controls are very loose in a computerized environment. Hence it is essential for the internal auditor to learn and understand technology and also update himself with it in order to ensure that proper controls are in place and generate good audit findings from it. There is increasing pressure on internal auditors to perform more efficiently and effectively which is possible by harnessing the use of information Technology tools which allow for more critical analysis and broader coverage of internal audit work.
- f) Consulting approach: Internal audit approach has now become more consulting in nature. Each operational area undertaken for audit is required to be conducted by auditor who has specialized in that particular. Internal Auditor with multi-disciplinary skills will be preferred. Internal audit is now focus more on process compliance rather than transaction compliance, law compliance and adherence to established corporate policies as the organization grows. Internal audit must help the top management in its decision making process.
- g) Consulting Assignments – Mergers and acquisition, Frauds, Outsourcing etc: In view of the increasing global Competition and business processes becoming more complex, internal auditors are being given more and more consulting assignments such as active participation in merger and acquisition activity, cost restructuring, ERP implementation, fraud findings, co-sourcing, preparation of audit manuals, industry research for diversification of client business, bench marking etc.