5 Best Practices for Effective Internal Audit

Internal Audit – a must for every organization for various reasons. An internal financial audit gives you an overview as to where your organization stands in terms of quality and compliance, and it also proves to be an investigative exercise to understand the scope of opportunities within the organization. An Internal Audit helps the management to steer the organization most swiftly towards its goals. To ensure effective financial audit services, below are some of the best practices that every organization can follow:

  • Communication is key. Communicate your requirements to your auditor before commencing the audit to pave the way for a smooth audit. Through communication – you can understand the best model which needs to be used for your audit.
  • To ensure a cost-effective audit – focus on the factors that directly impact the internal audit process. This will help you save time and money, as you would have streamlined the entire audit process. Once the scope is reduced, the auditors can focus on the problem areas to give you effective results.
  • A risk management strategy is a must, and this must be applied across workflows. This will help identify the core problem areas and improve the scope of an internal audit. Once the most susceptible assets are identified – and a strategy to better them can be formed and addressed effectively.
  • An auditor must maintain independence through the audit, to be objective around their findings. It’s not about facts or faults when you opt for an internal financial audit – but its about verifying compliance.
  • To ensure an effective and efficient audit, timelines should be maintained. By allocating proper time to each task of the audit process – the desired timeline can be met, keeping the auditor and his stakeholders in sync with the entire process.

Being a key component for every management system, an Internal Audit gives an overview of the processes within their system and their effectiveness – adding value to any organization. If you’re looking for financial audit services in the UAE, reach out to TRC Pamco, a firm with over 17 years of experience in conducting independent audits.

Role of Accounting & Auditing in Business Planning & Decision Making

Accounting & Auditing

Data, Records, Reports, and Analytics of your assets and liabilities or debts are key factors for any business – and to derive this data – accounting and auditing is a core function of any organization. It is through the process of accounting that companies record and report the intricate pieces of financial data – which allows the management as well as investors to understand the financial health of their business and make informed decisions.

Similarly, an audit is important to assess the economic and transactional activities of an organization. An audit is an independent view of the financial statements, thereby increasing user confidence in the financial statements, and reducing the risk element within an organization. It also ensures your organization is following the rules and regulations.

What are the benefits of accounting & auditing? Read on to find out!

  • You get access to detailed statistical information about the company, leading to greater transparency within the management and investors, increasing confidence and efficiency.
  • It helps align the resources within your organization, and their time is managed properly, it leads to a more profitable company
  • When you accumulate the financial information following the accounting standards – it ensures you can perform auditing, taxation, and more.
  • Accounting includes the ascertainment of interpretation and analysis of accounts and statements, an accounting system, and formulation of financial principles and helps the management conduct financial planning effectively.

It is this information that the investors and analysts use to make important decisions around the valuation and creditworthiness of an organization, without this, they would have a lesser understanding of historical data, current data, and future projections. There are various Chartered Accountant firms in UAE that provide accounting and auditing services and can take your worries away!
To know more, reach out to TRC Pamco, one of the leading accounting firms in Abu Dhabi – and watch performance improvements, given their experience and expertise, thereby concentrating on higher-level decision making.