+971 4 4542366 +971 554413566

Flyingcolour logo Flyingcolour logo2

  • Home
  • UAE Company Setup ›

    Business Setup Overview

    • Business Setup Overview of UAE
    • Educate yourself about Jurisdictions in UAE

    Mainland Business Setup

    • UAE Mainland Overview
    • Mainland Professional Company
    • Mainland Limited Liability Company
    • Mainland Industrial Company
    • Mainland Branch/ Representative for Foreign Company
    • Mainland GCC Owned Company

    UAE Mainland

    • Dubai Mainland
      Dubai Mainland Business Setup Overview Business Setup Al Barsha & Tcom Business Setup Al Quoz & DIP Business Setup Al Qusais Business Setup Bur Dubai Business Setup Business Bay Dubai Business Setup Deira Dubai
      Business Setup Downtown Dubai Business Setup Dubai Marina & JBR Business Setup Dubai Media City Business Setup International City Business Setup New Dubai Business Setup Sheikh Zayed Road Business Setup Jumeirah Beach Road & Al Wasal Road
    • Abu Dhabi Mainland
    • Ajman Mainland
    • Sharjah Mainland

    UAE Freezone

    • Freezone Business Setup Overview
    • Dubai Freezone
    • Abu Dhabi Freezone
    • Ajman Freezone
    • Sharjah Freezone
    • Ras al Khaimah Freezone
    • Umm al Quwain Freezone
    • Fujairah Freezone

    UAE Offshore

    • Offshore Business Setup Overview
    • Dubai Offshore
    • Ajman Offshore
    • RAK ICC Offshore
  • Taxation ›

    Taxation

    Expert taxation and financial management solutions

    VAT Services

    Business Accounting Services

    Financial Forecast & Projection

    Book-keeping Services

    Accounts Payable

    CFO Services

    Inventory Verification Service

    Tax Residency Certificate in UAE

    Payroll Management

    Month End Financial

  • PRO Services ›

    PRO Services

    Professional support for all your business needs

    PRO Business Services Overview

    PRO Services

    MEA & MOFA Attestation

    Golden Visa

    Property Visa

    DUBAI Customs Registration

    Assistance in Bank Account Opening in UAE

  • DIFC Formation ›

    DIFC Formation

    Pioneering Excellence in Financial Foundations.

    Overview

    DIFC Foundation

    DIFC Prescribed Company

  • Blogs ›
    • Categories
    • Industries

    About Business

    Building & Engineering

    Educational Activities

    Financial Activities

    Gas & Energy

    Heavy Industries

    Light Industry

    Medical

    Nutrition & Food

    Personal Household

    Print & Media

    Real Estate

    Sports

    Activity Group: Transport

    Various Activities

    Business Setup

    Company Formation

    Dubai Business Laws

    Entertainment & Related

    Freezone Company Formation

    Offshore Formation

    Research Article

    UAE Business News

    Accounting & Bookkeeping

    Business Setup Dubai

    Cloth Pressing Business

    Construction

    Crypto Business

    Decoration Design Business

    Dry Cleaning Business

    Education

    Energy and Mining

    IT

    Financial Services

    Fintech

    Healthcare

    Healthcare Industry

    Hotel and Hospitality

    Home Based Business

    Manufacturing

    Media and Entertainment

    Online Business

    Real Estates

    Restaurant and Cafe

    Shipping

    Telecommunication

    Trading

    Transport

    Travel and Tourism

    Utilities

    Yoga Centre

  • Contact
Calculate Your Business Setup Cost in UAE

Internal Audit: What Is It and What are its Benefits?

  • Home
  • Blog
  • Internal Audit: What Is It and What are its Benefits?
  • Wed 11 Mar 2020 | By : admin
One common question we professionals receive is “Can we skip Internal Audit as we are not MNC; we operate in relatively smaller markets”. Before answering it, let me ask you few questions: Do you want to provide efficient, law compliant, reliable, secure and effective services, if the answer is “Yes” then you should opt for Internal Audit. Irrespective of the type of Organization whether big or Small, Environment which they operate in, whether seasonal or regular, every organization should go for Internal Audit.

What is Internal Audit?

As the name sounds Internal Audit is an Internal Operation of the Management with emphasis on Providing Assurance on Enterprise’s risk management, governance and internal control processes are operating effectively and efficiently.

How does Internal Audit monitor effectiveness of internal controls?

The Principal tasks carried out by Internal Auditors are: Risk assessment– Assisting Management in Identification and Prioritization of Business Process that require attention and audit focus. Process walkthroughs and documentation– Understanding the business process & procedures of an organization by observation, interviews and documentation. Control assessment – Assisting management in identification of gaps between desired and currently implemented controls. Testing– Performing tests of controls to verify whether controls are working as designed Reporting– Providing observations and recommendations to improve processes and controls.

External audit v/s Internal Audit

The objective of External Audit is to express an opinion on the Financial Statements of the organization. The objective of Internal Audit is to assess and improve the Effectiveness of Governance, Risk Management and Control Process. External audits have no responsibility for improvement but only have a duty to report the problems. Improvement is fundamental to the purpose of internal auditing. What is Internal Audit and what are its benefits (2)

Benefits of Internal Auditing

  1. Achieving Objective: Business process and procedures requires effective internal control to supervise, monitor, prevent, detect and correct irregular transactions, measure operational efficiency, adequate documentation. Internal Auditor reviews the Design of the internal Controls placed and provide the management any shortcomings, deviations and also communicates them with the improvements required.
  2. Assess the Risk of Misstatement: Auditor assess the Risk of Material Misstatement in the organizations Financial statements. Without internal control or internal audit an organization would not be able to prepare reliable financial Statements.
  3. Fraud Prevention and Detection: Internal Audit plays a crucial role in prevention and detection of Frauds. Analysis of implemented internal controls can prevent and detect various frauds and some financial irregularities
  4. Compliance with Laws and Regulations: By consistently performing internal audit, an organization can ensure its compliance with relevant and applicable laws and regulations. Compliance will also helps in avoiding the Fines associated with any non-compliance.
  5. Improved Performance: An internal auditor would be helpful in improving the performance of the organization. The company’s achievements in the previous year would be the basis of the budget preparations for the present year by drawing up income statements and balance sheets. Therefore, an internal audit improves the performance of a business and its employees.
  6. Proper Use of Resources: Internal Audit check whether the Resources are being used appropriately. The operating cost will be higher when the resources are not used optimally. The Internal Auditor emphasizes on the Optimal utilization of the resources. The optimum use of resources in a company could be determined with the control of the cost of output.
  7. Investigation: Internal Auditor can be assigned to investigate various matters of the business. If a situation arises then he/she can be given responsibility to examine facts and figures.
This blog post is written by CA Rashid Ali, Tax Advisor at Flyingcolour Accounting & Tax Services. At Flyingcolour, we have a team of qualified professionals who are expertise in providing internal financial review in UAE as well. Feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.

Leave a reply

  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.

  • Click here to Read.

Recent Posts

DMCC vs JAFZA: Which Premium Freezone Is Best for Your Business?
Mon 19 May 2025
Tax Benefits of DIFC Foundations for Global Investors
Thu 15 May 2025

Contact Us

Our Success

Our Success lies in honestly and integrity which are used as motivational factors to inspire us to arrive at success as well as prosperity for the company plus our customers.

18,000

+

Global Clients

20

+

Years of Experience

175

+

Team of Professional

High Tech


Real Time Support

Ready to take it a step further?

You can schedule a free call with our expert consultants

Do you have questions or want more information ?

Phone : +971 4 4542366

Mobile or Whatsapp : +971 554413566

Email : info@flyingcolour.com

Keep connected

Get updates by subscribe our newsletter

About Us
  • We are a leading consulting firm providing Company formation, Accounting & VAT and immigration services located in Dubai - UAE ...Read more
  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.
  • Click here to Read.
Popular Services
  • Jebel Ali Offshore Company Setup
  • Business Setup in Dubai Free zones
  • Limited Liability Company
  • Professional Company Setup
  • Bank Account Opening in Dubai
  • Offshore Company Formation
  • Dubai Mainland Company Setup
  • Trade License
  • Miscellaneous
  • Flyingcolour® Careers
Gallery
  • LegalEx Exhibition London – 2018
  • Going Global London – 2017
  • GITEX 2013
  • GITEX 2012
  • Diwali
Quick Links
  • Mainland Company Formation
  • Free Zone Company Formation
  • Offshore Company Formation
  • VAT Registration & Return Filing
  • Economic Activity Guide for UAE
  • VAT Consultancy Services
  • Customer Grievance Policy
  • Terms and Conditions
  • Privacy Policy
Contact
  • Head Office:
  • Office No.2608,2609 & 2610
  • Concord Tower Opposite Palm Jumeirah Dubai Media City,
  • Dubai. UAE.
  • DIFC Office:
  • Unit GV-00-04-03-BC-44, Level 3,
  • Gate Village Building 04, PO Box 84059,
  • Dubai. UAE.
  • payment

©2004 - 2025 Flyingcolour® . All rights reserved