Internal audit provides assurance to a company regarding the effectiveness of the organizational and management control in the business. Outsourcing the internal audit function allows an independent third-party to assess the workings of an organization in compliance with the International Financial Reporting Standards. This helps a business understand the flaws in their operations and receive unbiased information about various risks and degrading factors in the organization. An audit firm in Dubai can examine and advise the organization in areas such as risk management, financial analysis, and compliance with standards, to name a few.
7 Benefits of Outsourcing the Internal Audit function in Dubai
Increased Productivity and Quality
An independent audit firm seeks to increase the productivity of an organization by providing quality results within the assigned time. While examining risk management in a company, an internal auditor can detect any suspicious activities or transactions to prevent any financial crimes. A team of auditors in Dubai can provide you with detailed reports about the company’s operations; this provides the business owner with a better understanding of the organizational controls.
Cost and Expenses Reduction
An organization can save on their expenditures by outsourcing the audit functions. By doing so, a company can limit the employees that work in the audit department of the company. Outsourcing the audit functions is beneficial for organizations that cannot afford to recruit a full-time team of audit staffs. A company can outsource to an auditor in Dubai for the internal audit, and they do not have to pay them a fixed amount of salary every month. The independent audit review is prepared by certified and skilled consultants, sufficient for most of the company’s requirements.
Compliance with set standards in the UAE
An independent internal auditor provides its clients with an in-depth analysis of their organizational and managerial operations. Auditing firms in UAE perform checks to ensure that the organization is complying with the International Financial Reporting Standards (IFRS). IFRS is an international set of standards that aim to improve the consistency in the organization. The companies benefit from such standards as investors will invest in a company if there is a transparency in the business practices. Internal audit firms are well-informed and aware of the new laws and regulations that govern the accounting and auditing standards in the UAE.
An internal auditor has expert knowledge
By outsourcing internal auditing function, the auditors can provide the organization with expert knowledge and advice. The independent internal auditors are certified and skilled consultants that can identify issues and provide quick amicable solutions for the organization. Whereas, an in-house auditor may not be able to detect or identify such issues in the company. The outsourced auditors seek to provide the organization with a positive market image and limit the risks involved. An independent auditor can bring in years of experience to conduct the internal auditing of the company efficiently. This will benefit the organization in the long run.
Diversity of functions offered by Audit firms in UAE
A team of internal auditors is composed of experts that have various skills dealing with almost every section of an organization. This may lack in an in-house auditing team. The functional diversity offered by audit firms in the UAE can help ensure long term profitable results for the company.
An independent auditor can help develop benchmarks that can assist the management and employees in improving their company’s operations. The benchmarks ensure standard performance in the organization and increase in the revenue by maintaining and complying to the accounting standards. These benchmarks are also used to compare the improvement in productivity and performance in the company. The internal auditors may alter these benchmarks depending on various external factors for the benefit of the organization.
Unbiased evaluation of an outsourced internal auditor
An organization can benefit from outsourcing to an independent auditing firm that can provide the company with an unbiased evaluation of the workings and operations of the company. This unbiased evaluation seeks to improve the productivity and performance of the company. An independent internal auditor can help present suggestions and proposals in various fields such as financial, legal, and risk management, to name a few. The outsourced internal auditor can provide unbiased assessments that examine the company’s operations and controls, as well as each employee’s performance and provides useful advice for improvement. This arrangement may be considered better than in-house auditing companies in Dubai that can perform their functions with a biased intent.