What is an internal audit?
As stated in the IIA concept of internal auditing, the role—and hence the objective—of the operation should be an independent, objective assuring and the advisory activity should intend to add value and enhance the enterprise’s functioning. It allows the organization to meet its goals by adopting a structured and disciplined approach to evaluating and enhancing the risk’s efficiency.
Significance of Internal Audit
An additional benefit is given by the internal audit role as an advocate for reform, providing suggestions for progress that are adopted and enforced by management.
How much would you spend, as a director of the board or as a senior executive, to ensure that the procedures and services you rely on to manage the company are functioning correctly? The guarantee is so reliable that you don’t even care about it?
It’s hard to place a value on “peace of mind,” but the best value is something that a successful internal audit feature can offer.
Significance of measuring the effectiveness of Internal Auditing
An internal audit plays a significant role in ensuring the proper governance and operation of an enterprise. Measuring the effectiveness of an audit ensures that the audit procedure fulfils its goals and objectives and subsequently, provides consistent, reliable and useful results. BS Auditing has a panel of experienced auditors, who can carry out a comprehensive analysis to facilitate the growth of your company.
Initiation of evaluating the effectiveness
All the best accounting firms in UAE offer evaluation of Internal Audit, which helps weigh the audit’s success. To assess if an internal audit is successful is to ask customers if they are comfortable with the assurance they need when they need it and in a useful manner regarding the risks that matter to them and the company. Only then can you start looking at the added benefit that is given. Let’s look at specific common steps and examine their meaning and significance.
Moving back to the aims of clarifying what matters, the CAE should recommend steps and measures to promote the evaluation by the audit committee and the upper executives of the efficacy of the internal audit.
Elements to remember when measuring the effectiveness of an internal audit.
The following are the things that should be considered:
- Delivery against the plan
- Delivery against annual objectives
- Internal quality assurance reviews
- Extend to which audit recommendations are agreed and implemented
- Director meetings and audit assurance questionnaires
- Benchmarking
- External assessment
- Management performance review
Monitoring and assessing audit efficiency is becoming increasingly relevant. To be able to show high and reliable results and regulatory requirements the professional requirements are essential to the enforcement of the contractual responsibilities, which is to have an effective and efficient audit service. It’s also necessary to demonstrate the best practice to serve as a tool for creativity and transformation.
Conventionally, the work of internal audit has been subject to a high degree of inspection, and this has been the case. It involved a comprehensive means of assessing work and efficiency. This could affect accessible and productive time, and the significant balance is struck between productive undertaking work and time taken to track and report on service delivery and efficiency.
When it comes to ‘Internal’ appraisal, it should always be carried out by senior managers, such as the Head of Finance and Corporate Director Resources and representatives of the Audit Committee. You must also confirm their positions to make sure that their experience is authentic. You must continue to track the areas as laid out and also look at them proactively.
BSA Auditing & Consultancy provides a vast range of accounting, auditing and business consultancy services in the UAE. Our experts inspect the ins and outs of every business to make sure that all operations are executed in the most accurate manner. Our professional and experienced teams offer their assistance to companies operating in a plethora of industries in the UAE. Our dedication, commitment and loyalty to a company facilitates the growth of the client’s businesses.
To learn more about BSA Auditing & Consultancy, or to schedule a consultation session, give us a call at +97145707357. You can also chat with our representatives via email at info@bsauditing.com.
