ICV Audit
The In-Country Value (ICV) program was initiated by the UAE to boost economic activity, strengthen the capacities of local companies by promoting progressive growth in collaboration with the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries in 2018. The Audit in the project In-Country Value (ICV) is the central component that serves as a tool for evaluating a company’s contribution to the local economy, hence increasing the procurement for domestic businesses and the economic growth in the state.
The audit cannot be conducted by a company related to the parent company or has any vested interests in it. It is where the scope of external audit gets generated. An external Audit is an independently conducted audit by an authorized audit firm in Dubai like Farahat and Co.
Who are the UAE (In-Country Value) ICV Approved Auditors?
ICV Approved Auditors are the experts certified by the Abu Dhabi National Oil Company (ADNOC) to carry out ICV audits for businesses operating in the United Arab Emirates. These approved ICV auditors are impartial and independent. These auditors are practically doing well to determine if a business is properly complying with the guidelines of the ICV program. ICV Auditors use a rigorous and methodical approach to evaluate a company’s spending and financial impact on the community. To determine and enhance the company’s ICV score—which shows the proportion of a company’s overall spending that has been kept in the UAE—they gather, go through, and evaluate data and documents.
How To Calculate an In-Country Value (ICV) Score?
A quantitative indicator of how much a company retains value in the United Arab Emirates is its ICV score. It is determined using a number of financial indicators, such as investment, employment, and local procurement data. The more points a company receives, the more it contributes to the economy of the state.
How Do In-Country Value (ICV) Audit Services Function?
It is mandatory for companies collaborating with ADNOC and other organizations that have embraced the ICV Program to go through an ICV Audit. In order to calculate the company’s ICV score, this audit thoroughly examines a number of documents, including financial statements, procurement, and personnel records.
What Is the Procedure for Conducting an In-Country Value (ICV) Audit?
The following phases are involved in the In-Country Value (ICV) audit:
- Specifying the Audit Area: The first stage in the In-Country Value (ICV) audit procedure is to figure out the scope. This includes defining the main areas of assessment, putting limits on the audit’s scope, and creating explicit objectives. This crucial step guarantees that the audit is targeted and in line with the goals of the ICV Program. To ensure an efficient, and comprehensive review, the auditor works in aligning with the company to comprehend its operations and the scope of the audit coverage.
- Information Acquisition: Following the broad scenario of the scope, the auditor sets out on a thorough information-gathering mission. This phase is more important as it entails information, such as financial records, personnel information, and procurement paperwork. The examiner carefully manages and evaluates the data.
- Examination: The auditor examines the data after gathering all relevant information to assess the company’s compliance with the ICV Program. This analysis takes into account the company’s strategic initiatives and operational practices that support the economic development of the United Arab Emirates. It goes beyond a simple quantitative review of the numbers to include a qualitative assessment.
- Calculating an ICV Score: The ICV score calculation is the central component of the ICV Audit. This score indicates the expenditure proportion kept in the UAE. The ICV score is a numerical depiction of the company’s contribution to the UAE economy. The computation is based on a predetermined formula that accounts for several variables, including employment of UAE nationals, investment, and local procurement.
- Issuance of In-Country Value (ICV) audit report: After analysis, an audit report is put together by the auditor.
- Granting of ICV Certification: The awarding of the ICV Certification marks the end of the ICV Audit procedure. This certification proves that the business supports the economic objectives of the United Arab Emirates. It is given to stakeholders as a sign of the company’s commitment to fostering the industrial and economic growth of the United Arab Emirates and is based on the audit results. It has a one-year validity.
Why Choose an In-Country Value (ICV) Assessment?
- An ICV audit supports businesses in finding out the weaknesses in their process by fixing the mistakes.
- Compliance and adherence to ICV regulations are necessary to receive an ICV certificate.
- With Internal Controls, the Auditors assist in correct ICV reporting by reviewing and processes.
Renewal of ICV Certification:
ICV Certification can be renewed through additional audits after its one-year expiration.
What Are the Advantages of In-Country Value (ICV) Certification?
Certifications and high ICV scores are indicative of a dedication to business while contributing to the UAE economy with the expectation of improvement in the company’s chances of landing new accords with government agencies or extending current contracts.
Observance and Complying With In-Country Value (ICV) Regulations: –
UAE companies must follow the rules as per the requirements of the ICV program to keep their ICV Certification. Monitoring and Follow-up audits are carried out by ICV auditors for compliance Audit is essential for the Businesses having activities in the UAE particularly those who are incorporated with ADNOC and its subsidiaries for the Certification process that indicates the willingness of the company for invest in the economy of the UAE. The Companies can show their support for the economic vision of the UAE by obtaining a competitive advantage in the market by comprehending the ICV program with their active participation.
Farhat and Co.: Reliable ICV Auditors You Can Trust
Farhat and Co the top audit firm in Dubai is committed to offering thorough ICV audit services in the United Arab Emirates. In addition to carrying out the required audits, we also provide advice on how businesses can raise their ICV scores and, consequently, their economic contributions to the community.
