Finance

4 Key Aspects Auditing Teams Target To Ensure Internal Audit Compliance In Volatile Times

We are currently in an unprecedented period of volatility that is not expected to end soon. To meet today’s uncertain challenges and ensure internal audit compliance, learn which risk areas should be included in the internal audit.

Even casual observers of the business world know that things are changing quickly. Whether technological, geopolitical, societal, or macro-economic–evidence of the increasing rate and scope of change is all around us. Internal auditors need to be agile to help organizations face volatile situations. Internal audit services in Dubai need to be flexible and keep up with emerging risk areas.

The WEF ( World Economic Forum said the changes triggered by the Fourth Industrial Revolution, taking place at such an exponential rate that there is no historical precedent, changing almost all sectors and impacting business models and shifting systems of governance, management, and production.

Digital transformation has already had an impact on internal audit function. This increased the scope of their risk coverage, as they sought new growth strategies, M&A activity, and expansion into new markets. As their organizations strive to remain competitive, the pursuit of new growth strategies, activity, and expansion into new markets has impacted their ability to cover their risk. What areas should internal audit firms in Dubai focus on in the face of seismic shifts?

What Areas Of Risk Should Internal Audit Services Dubai Teams Target?

This segment will discuss four key trends that various under key risks connect with. These factors are important to helping certified internal audit in Dubai teams and other users of financial statements in audit planning in the current setting.

The Strategic Importance Data

An increasing number of companies in Dubai and UAE are using data to help them plan their business strategies, improve customer experience, boost competitiveness or implement advanced technologies. Data protection and accountability are becoming more critical as UAE organizations use data to inform their business strategy.

There are also increased risks related to data governance, privacy, ethics, integrity, and data privacy. According to a recent study on firms in UAE and other countries, audit teams said they plan to cover Data Privacy – 77%) and Data Governance – 67%. Still, fewer indicated confidence in the audit’s ability to assure these risks.

Internal audit teams can help address these data-related risk issues by providing input to constructed governance frameworks, advising on operational and strategic steering committees, and executing assurance projects related to data usage, classification, training, and access.

IT Vulnerabilities

The number of access points to an organization expands as the IT infrastructure grows and new applications are added. Many of these technologies are not monitored or patched quickly. The risks associated with cyber-attacks that are more sophisticated and complex, and the diversification of threat actors using advanced tools like AI, make these technologies less attractive than the potential benefits and promises they offer. This makes cybersecurity preparedness and assurance over IT vulnerabilities a vital issue for internal audits.

Costs And Growth Pressures

Most UAE companies live an average of 24 years. Keep in mind, the aggregate age in the 1950s was 60 years. By 2027, it will be a great 12 years. Due to this dire outlook, many organizations UAE and other parts of the world realize that “business as usual” is not an option.

Companies are pursuing more digital transformation projects to improve long-term viability, stay competitive in new market disruptions, and redesign their business strategies to thrive. UAE firms should be careful when considering const efficient strategies and ways to grow.

They must also be cautious about weakening the control and oversight environment. This can increase reliance on third parties and digital business transformations such as the emerging ecosystem model. Internal audit companies in UAE should be aware of strategic workforce planning.

Planning Horizons Shortened

Uncertainty and volatility were the prevailing features in 2020 and will continue to be so for 2022. Internal auditors need to be ready to deal with the unexpected. Increased business disruptions and instability across the globe make it difficult to predict what might happen. There is also a growing risk of regulatory uncertainty, operational resilience, trade and tariffs, and increased volatility.

This volatility-driven risk presents new challenges to internal audit teams. These include scenario planning, the formation of long-term strategic plans, compliance requirements, and limited risk awareness. When faced with disruptions, agility is critical. Internal audit must be able to react quickly and change course if necessary.

Conclusion

It can be daunting to face change, good or bad. Internal audit firms in UAE need to adopt a change mindset to thrive in a world where transformation is alarming. Internal audits can help organizations remain on top of current risks while allowing for future adaptations by being flexible and agile. Get in touch with audit firms in Dubai to learn how we can help you Dubai company with streamlined audit assistance.

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