Internal auditors are professionals who have thorough knowledge in the field of accounting and audit, based on their knowledge, they carry out an independent appraisal of the business which throws light on the strengths and weaknesses of the business.
Role of an internal auditor
An internal auditor provides comprehensive information about the business and carries out an analyses of the risk associated with the same. The role of the auditor is discussed below.
1. Dealing with risk: Risk is associated with every type of business. There are undesirable situations and outcomes that affect the business and internal auditors help identify and understand such risks. Through their research, they manage to carry out an analyses of the trends and understand the current processes which can deal with the risk. They also offer solutions to mitigate the risk and reduce any chances of a loss. The experience of an auditor and the objective of the business help maximize the opportunities and minimize the risk associated with the business.
2. Reporting on the operations of the company: An internal auditor will report on the business operations of the company to the management. They are experts in their field and know how the companies can run efficiently. Once they get an insight into the operations of the company, they will be able to identify the duplication of work and the responsibility and also highlight the areas that need attention. Their findings will be reported to the management who will help make changes in order to increase the efficiency of the business and to help the organization work better.
3. Reduce the risk of fraud: Internal audit can help uncover fraud. Every business owner hopes that their employees are not acting unprofessionally or carrying out fraudulent activities. However, the investigations through an internal audit can help discover the behaviour and will identify the occurrence of frauds. Employing an auditor will act as a safety net and help the business owner reach out ton them in case such behaviour is noticed. It could cause damages to the company and lead to huge losses. The internal audit in Dubai helps reduce any chances of fraud or misappropriation.
4. Establishing appropriate controls: Most companies have effective business controls in place, however, an internal audit can help strengthen the same by establishing controls as and when necessary. The internal auditor can explore the controls and assess whether they are effective enough and they will recommend controls which can be seamlessly integrated into the business vertical. They control will not be too stringent or too lax.
5. Recommendations for the future: Every business has a long term plan and wishes to expand over a period of time. An internal auditor will make recommendations for the future strategy that can help achieve the long term goals. These recommendations will help get the greatest value from the business and will ensure that the business is taking strong steps towards achieving their goals.
Internal audit is important with regard to regulatory compliance and is also valuable to manage risk. It helps evaluate the performance of the company and ensures that the employees are working in a strong and competitive business environment. Internal auditors are professionals who have thorough knowledge of the accounts and audit of the company and will help them perform better by recommending necessary risk mitigation tools and by recommending steps for the future plan. Auditor monitor and analyse the risks and controls of the organization in addition to reviewing the compliance of the organization with regard to the federal laws. They basically gather all the information on how an organization is operating and use it to show where it needs to improve. The identification of strengths and weaknesses of an organization can go a long way in improving the performance and the profitability of an organization.