Internal audits have become one of the most important pillars of responsible business management in the UAE. With growing regulatory expectations, stricter financial reporting requirements, and continuous business transformation, companies need a structured way to assess their internal processes. Internal audit services help businesses ensure controlled risks, efficient operations, and reliable financial information. In Dubai, where free zone and mainland regulations are frequently changing, having the right assurance function is not only a requirement but also a strategic necessity.
This guide will explain what internal audits are, when Dubai companies need them, what an audit consists of, and how to choose the right audit partner.
Today, business operations in the UAE require compliance with regulatory authorities and enterprise risk management. Farahat and Co. provides an extensive range of internal audit services in Dubai and the other emirates to protect businesses by mitigating potential risks and adding value to their growth.
Businesses are at risk of disruption due to inefficient internal controls. Our firms in Dubai ensure that the core business processes, such as finance, technology, operations, tax, and other risk monitoring processes, are executed according to their stringent internal control policies.
Farahat and Co. has an extensive team of experts providing outsourced or co-sourced In-house audit staff who have experience advising businesses like yours about risk management and regulatory and legal compliance through the use of the latest technology as per the industrial standards.
What is Internal Audit?
An internal audit is a process of independent and objective assurance that reviews an organization’s operations, financial records, and risk controls. It assists organizations in enhancing their risk management, governance, and ultimately ensuring that adequate internal controls are operating effectively.
Contemporary internal audit services look at the whole environment of operations: not just financial accuracy but compliance, safeguarding of assets, quality of reporting, and whether processes are aligned with management objectives. Internal auditors provide unbiased insights to the board and senior leadership about where gaps exist and how efficiency can be improved.
A well-structured internal audit assists organization in:
Internal audit Dubai requirements vary based on the nature of the business and the regulatory requirements. Many organizations carry out internal audits annually, but a number perform them quarterly, particularly regulated industries.
Internal audits are performed when:
Regulatory requirements necessitate this.
Some industries like finance, insurance, and investment have to perform periodic audits because of corporate governance requirements.
Companies operate in free zones.
Many free zone companies undertake an internal audit for the main purpose of reporting or licence renewal requirements. In businesses operating as Qualifying Free Zone Persons (QFZPs), internal audits support 0% corporate tax compliance.
Organisations prepare audited financial statements
Internal audits help ensure that the accounting and operational processes are in order before an external audit.
Businesses have operational or financial risks.
Internal audits help identify inefficiencies, errors, or gaps in high-volume or high-risk operations.
Firms restructure them
In addition, internal audits provide clarity on matters of mergers, acquisitions, or changes in leadership.
Regulatory compliance shall be ensured.
All companies should be aware of and align with the general regulations in the UAE, such as tax rules, labor rules, and any sector-specific regulation.
In all, internal audits are an early warning mechanism that identifies and catches issues before they become costly problems.
An In-house audit aims to provide a systematic and disciplined approach to a company’s risk management policies and how to implement them effectively. Our team of dedicated internal auditors, CPA, and chartered accountants is up to date with the industry standards of internal financial review.
Our auditors help businesses across the UAE to develop a potential inside financial review process in line with regulatory internal financial review compliance.
Some of the core services that Farahat and Co. provide are as follows:
Robotic processes are taking over traditional accounting systems. If you plan to automate your business process, you must migrate with utmost care. Automation seamlessly works when you have an inside controls policy to automate and migrate to a better process. We provide continuous auditing, data cleaning, and analytics throughout the automation process. Our team offers In-house audit services reports for your automation process assessment, so you can make accurate decisions regarding your process automation.
Using traditional methods to combat the rapidly changing risk environment is an in-house audit issue. Farahat and Co’s Governance, Risk and Compliance services provide internal audit and risk management in fraud and theft analytics, tax management, financial instruments, Treasury, Information Technology, shared services, operational Management, procurement, and other potential areas. Our team of qualified experts works with the company’s Management, such as in-house internal auditors and directors, to develop a robust, compliant internal control strategy that adds value and growth to the business.
We provide both in-house audit outsourcing services and co-sourcing in the UAE that helps companies with:
➔ Regulatory and non-regulatory in-house audit compliance
➔ Business process assessments and improvements
➔ Internal audit controls development and execution
➔Financial review of the Information Technology process
➔ Information Security Services
Our team of experts aligns with the ISO 9001 in-house audit protocol, the latest standard in
inside controls.
Through decades of experience in the audit industry, Farahat and Co. is one of the top firms in Dubai. We span our expertise across different sectors, such as healthcare, hospitality, banks and financial institutions, educational institutes, government organizations, and more.
conducting compliance, operational, and financial reviews. Some of our core services include:
➔ Risk Assessment and Management
➔ Outsource and co-sourcing of in-house audit experts
➔ The periodic analysis of strategic performance and quality controls
➔ Transfer of knowledge and expertise by providing training to employees
➔ Development of the process through continuous improvement.
Our team covers all the aspects of internal audits through its best practices in the industry. In
turn, it helps businesses like yours to be cost-effective and save time by fixing the internal
controls the process through an impartial assessment.
Audit planning initiates the process, during which the auditor defines the objectives, scope, and methodology of the audit. It ensures that the engagement covers the right departments, systems, and processes.
Typical planning steps include:
Strong planning ensures that the audit is directed, organized, and consistent with management objectives.
This part of the audit examines how well internal processes work in practice. Auditors assess:
Auditors utilize control testing, staff interviews, and document reviews to identify whether the existing process matches best practices. Any weak controls are flagged for immediate correction.
Compliance is a major focus area in the UAE. Internal audits ensure that the business complies with all regulatory expectations, including:
Auditors ensure that all documentation is complete, the regulatory deadlines are complied with, and the processes follow all the required accounting standards.
Auditors will prepare an internal audit report upon completion of the audit, comprising:
The report is shared with senior management or the board. A follow-up review ensures that the recommended changes have been implemented.
Benefits accruing from internal audits are long-term and contribute immensely to strengthening the operational and governance framework of the organization.
Audits detect financial and operational risks at an early stage of their occurrence for corrective measures to be taken before the issues escalate.
Businesses stay abreast with UAE laws, including Corporate Tax rules, VAT, AML, and ESR regulations, to minimize the impact of fines.
They highlight inefficiencies and the incidents of any unnecessary cost and process gaps assisting an organization in streamlining workflows and using resources in a much more efficient manner.
Strong controls minimize errors, protect assets, and avoid financial misfeasance or fraud.
Confidence of boards and stakeholders in the reliability of financial and operational information increases.
Audits help in the discovery of unusual activities supporting clean financial practices.
Audit findings give businesses data-based insight to support management in strategic planning.
Proper documentation and internal control checks ensure faster external audit clearances.
The selection of the right audit partner is very important for accurate reporting and strong internal controls. Companies should focus on:
Accreditation & Licensure
Choose companies licensed by pertinent UAE authorities, such as the Ministry of Economy or free zone regulators like DMCC and JAFZA.
Professional Qualifications
Auditors should possess the following certifications:
Industry Experience
These service providers need to understand your industry, be it real estate, retail, manufacturing, or financial services.
Range of Services
Firms offering additional services, such as risk assessments, AML, tax compliance, or IT audits, provide stronger value.
Technology Integration
Audit firms should use the latest tools, analytics, and automation to drive efficiencies and greater precision.
Transparent Communication
Clearly, all processes, timelines, and reports about auditing should be straightforward and understandable.
Local Knowledge
A Dubai-based team ensures knowledge of UAE regulations, free zone requirements, and evolving compliance expectations.
Farahat and Co. is one of the top firms in the UAE. Having shared decades of expertise in internal and external audits, we help businesses in the UAE strategies and implement control measures effectively. We have seen a growing demand for in-house audits in recent years due to government regulations and an increase in the number of investments in businesses.
Our team helps you detect lapses within your company’s processes before external auditors discover them.
Also Read: External Audit Services in Dubai
We meticulously strive to train our team of experts to the highest industry stands for risks, frauds, and compliances using the latest methodologies and information technology. Learn more about how you can transform your business from a reactive to a proactive model through a robust internal control process. Click here to book a consultation today.
Enquire Now
Whereas most businesses conduct audits yearly, high-risk businesses or those under regulation require quarterly and six-month auditing.
Indeed, SMEs have a tendency to outsource audits in order to achieve cost reduction without hiring full-time internal auditors, simultaneously enhancing oversight and compliance.
The independent audit teams operate separate from company management and report directly to leadership or the board.
The top companies include licensed audit firms with certified professionals, along with good local experience in UAE compliance.