Auditing includes the complete evaluation of an organization’s financial and operational activities, as this will provide transparency and accountability. This ensures that the company complies with the required laws and regulations. Audits are of two types; external and internal. The internal audit evaluates the issues relating to the firm’s business procedure and risks. In this post, we will give you a complete guide to preparing a successful internal audit report per the accounting and auditing regulations in Dubai.
What Is An Internal Audit Report?
An internal audit report is a formal report that details the findings of an audit, which the internal auditor uses to demonstrate what was looked at while emphasizing the issues, advantages, and conclusions. This helps the management to see what’s working well and which areas should be worked upon. A good internal audit report will encourage the readers to follow the recommended actions by clearly communicating the auditing process’s parameters, goals, and conclusions. Let us see how accounting and auditing in Dubai takes place.
Steps To Create A Good Internal Audit Report
First, you will have to acknowledge that you are aware of the report’s goals and this internal audit’s aim. Start with collecting the required information after you know the report’s objective. There might be numerous sources like financial documents, business records, and personnel interviews that can provide this information. Then start with the actual process as follows:
This will include planning a meeting with the primary organization to review the audit process, goals, scope, risk factors, and other topics. In this meeting, the clientele will clarify the objectives and additional information to the auditor, and then each of the elements will be thought out and documented.
In this stage, the steps outlined in the planning phase will be repeated, including interviewing people, confirming sample transactions, and examining legal guidelines and best practices. This stage also involves investigating and assessing the risks associated with the system. The testing will ensure that the controls found to be operating properly during the preliminary examination are actually working well. The auditor will share the major results with the client for evaluation, and there will be constant communication between the auditor and the clients during this stage.
Now, the internal auditors will create the internal audit report, and the clients will prepare a draft report that will include the judgments, conclusions, and suggestions. The audit customer should review the information and also offer observations, remedies, and other changes, along with a timetable for completing the improvements. Each response should be recorded and given to the appropriate authority.
Finally, the auditor should conduct a follow-up to ensure that the suggestions have been implemented as planned, and the unfulfilled plans shall be notified to the higher authority each year.
As your company can face emerging risks, it is always better to have a good internal audit report in today’s challenging global environment. So you can take help from the best auditing service that focuses on providing objective support and operational efficacy for your internal audit.