The fear of being audited is felt in different organisations. It is basically a process through which the process that is used in an organisation is evaluated. Apart from the normal process that is followed for the audit in Dubai, there are some myths that are growing to be stronger. Myths tell us a lot about the things with which we are concerned. These are the ways in which people believes the world will work. The most important myths that every businessman should know about audits are explained below:
1. Few audits are good for the organisation:
Audits are a lengthy process; there are a lot of people who tend to avoid audits because they think that fewer audits will be good for their organisation. Well, according to the different studies that are carried out to get the answer of this myth, reveals that frequent auditing of the organisation will have positive effects on the progress.
2. The internal audits are all about spending too much time on bigger risks:
It is believed that the internal audit that is done within an organisation is focused on bigger risks only. This is a myth that needs to be debunked. No doubt an audit focuses on the bigger risks that organisations are facing but the 80% of the audit is focused on examining the compliance of the procedures than focusing on the major risks.
3. Internal auditors are the accountants:
Most of the people believe that the internal auditors that are working in an organisation are also trained as accountants. They are the ones that focus only on the financial records of a company. This is a myth. Although the work of an internal auditor involves a lot of financial issues and the training of accountancy can help in various ways. But the work of internal auditors is focused on the detection of fraud and other compliance issues that are resulting in an organisation.
4. Audits should not be provided with the information they don’t ask:
The audit is a fearful process. There are some organisations that try to avoid this situation and some also believe that the auditors should be provided with the information that they need only. They should not be told about anything else. This assumption is not right as the auditor is the person that
is trying to check out the workings and the processes that are followed in your organisation. By providing all the information to the auditor, the organisation will be able to work effectively.
5. Auditors follow a specific checklist to audit every process, in the same way, every time:
If you are one of those who think that the work of the auditors is done with the use of a specific checklist, you must get rid of this assumption. The auditors use different checklists or different methods each time for the purpose of evaluation. As the process is carried out to make sure that there are no flaws, there is a need to develop a standard the matches the current condition of the organisation.
These were the important myths about the auditing that should be focused by every organisation. Every audit process is different from every other one and it will depend on the nature and the current needs of the organisation.