Internal Auditing Assurance & Consulting Services

Systematically assess and improve your internal controls, operations, and financial systems with our expert internal audit services. We identify risk areas, enhance performance, and help ensure compliance so your business operates efficiently and with confidence.

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Strengthen Your Controls with Internal Audit Expertise

Internal audit is a systematic activity with the purpose to provide independent assurance along with adding value and enhancing the company’s processes. It helps companies and organizations in achieving their objectives. It involves critical checking internal systems, management performance and financial activities of the company. Importance of internal audit for small and medium sized business is growing as it ensures effective and efficient use of resources in the businesses while ensuring risks are minimized to an acceptable level through risk based internal audit approach. Internal audit services cover a wide range of internal audits such as financial, VAT & compliance, operational, information system and special investigation.

Professional Internal Audit Services

The ultimately purpose of internal audit for the organization is value addition. In internal audit service, it is important to follow its core principles i.e., Independence, Objectivity, Proficiency, Care and Quality. Below are some of the examples where internal audit can help the following:

Improvement of internal control system
Correctness and reliability of financial and operating information as mechanism of review and reporting exist
Identify areas for optimizing resources and saving costs
Ensure compliance applicable rules and regulations.
Identify and prevent the financial statement misrepresentation for instance overstating assets or revenue or understates liabilities and expenses.
Identify and prevent the misappropriation of assets i.e. stealing cash or other assets such as supplies, inventory, equipment, and information. This can be concealed by adjusting records which internal audit can identify.
Identify and prevent the theft of cash before it is recorded, for example accepting payment from a customer but not recording this as sales
Identify and prevent fictitious payments for goods or services such as overstatement of invoices or use of invoices for personal reasons.
Identify and prevent fraudulent expense reimbursement such as payment for fictitious expenses.
Ensuring compliance with the tax laws

Further internal audit also helps in interpreting fraud risks and to determine whether fraud risks need special consideration when conducting an internal audit. Internal audit also helps in assessing the potential for fraud red flags and recommend controls to prevent and detect fraud. Internal audit also evaluates the effectiveness and contribute to the improvement of risk management processes.

Main Types of Internal Audits

a) Financial Audits

Financial internal audits cover accounting and finance department of the company. The accounting and finance department in a company typically include account receivable, account payable, payroll and compensation, fixed assets, cash & treasury management, financial reporting. Depending on size of the finance and accounts department of the company, financial internal audit can be planned as follows:

One separate internal audit engagement covering only one areas or section of accounting and finance department is conducted. For instance, an internal audit engagement scope covers only account payable and internal audit report is issued only on account payable.
In small businesses, it would be more appropriate to cover all the accounting and finance department in one internal audit engagement instead of separate section wise audits.

Financial internal audits also cover testing of design and implementation of internal controls on accounting and finance department.

b) Operational Audits

Operational internal audits evaluate effectiveness and efficiency of operational side of business along with risk assessment. This involves more detailed analysis of processes and procedures in the business operations of the company and recommend improvements to reduced operational cost, risks management, internal controls and processes in operations.

c) Information System Audits

These days information systems play very crucial role in any the success of any business and therefore internal audits of information systems are very essential. These audits are conducted to evaluate the internal control on information systems and testing IT operations, disaster recovery and business continuity. This ensure that standard practice and relevant SOPs are being followed, information and report generated are correct & reliable, threats are identified, and managed, adequate controls exist on information security & confidentiality.

d) Project Audits

This type of internal audits is carried out to evaluate and assess the various aspects of project under consideration. Typically, an internal audit of a project may include financial, operational, Information system and compliance aspects in detail.

e) Investigative Audits

Internal audit may need to investigate any suspected fraudulent activity, embezzlement, violation of relevant law and regulations.

f) Compliance Audits

There audits are conducted to check the level of compliance with internal policies & procedures and external rules & regulations. During the last few years significant laws and regulations has been implemented by UAE relating to various aspects. Further there are law and regulations for main land and free zone.

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Internal Audit Process

a) Internal Audit Charter

Internal audit charter is main policy documents which defines purpose, authority, responsibility of internal audit function whether insourced or outsourced. This document is approved by audit committee or by board members and this provide direction to day-to-day activities of internal audit function.

b) Annual Internal Audit Plan

For each organization with a well-established internal audit function, internal audit plan is prepared on annual basis. Generally, this annual internal audit plan is prepared at the start of financial year and this list all the internal audit engagements, resource allocation and timeline for each engagement, risk assessment, annual budget for the department pertaining to that financial year.

c) Internal Audit Engagement Execution

During the execution phase of each engagement listed in Internal audit plan the followings are performed:

Creating customers and suppliers in the accounting software.
Recording sales invoices.
Recording receipts against sales invoices.
Recording supplier invoices and expenses.
Recording payments for the supplier invoices and expenses.
Recording of petty cash transactions, if any.
Reconciling bank statements with accounting records.
Reconciliation of credit card, stripe, PayPal sales with credit card reports .
Recording accruals and prepayments.
Preparation of workings for accounting adjustments and passing of journal entries.
Any other activity incidental to the preparation of adequate financial reports.
Tracking thresholds for tax registrations

c) VAT accounting and return filing

We will ensure proper accounting is done to comply with the VAT requirements and shall also file the quarterly VAT return of the company.

Planning

It involved development of audit program, Internal control testing, detailed execution of audit such as details testing and review of transactions, documents, systems, polices and SOPs, preparation of working papers and corroboration of draft audit finding through further investigation and discussion with the auditee.

Audit fieldwork

It involves initial risk assessment to be done at the engagement level, review of last audit report(s), if any, communication with the client about the scope of audit, initial audit meeting to discuss and gather information of important areas.

Reporting

All findings from the field work are compiled in a draft report. For each finding, corresponding implications and recommendations are included and if necessary, relevant annexures are attached with the report. Draft report is issued to client with the request and deadline to provide response to the findings in the report. Once findings wise response is received from auditee, it is incorporated in the draft report and final report is issued to the Audit committee/owners.

Follow-up

Follow-up audits are conducted to see if the issues identified and reported in final audit report are resolved and to see if the necessary corrective actions have been taken.

Our Internal Audit Services in UAE

At Virtual Accountants LLC (VA), Our certified Internal Audit experts take care of the responsibilities allocated to them by our clients to improve their operations by identifying, classifying, and mitigating the risks to which the client has exposure as per the standards issued by IIA. Internal auditors, to improve the control environment and to add value, are required to suggest improvements as per industry standards and practices. Our team of internal auditors monitors the entity’s control and governance environment with high efficiency and effectiveness and have demonstrated improvements, on several occasions, in entities processes, control environment and governance structure.

We can also assist our clients with designing internal audit charter, risk based annual internal audit plan, audit programs. For small and medium size businesses outsourcing internal audit function is cost effective approach as it allows access to better experience and expertise. Contact us if you need any assistance in this regard.

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FAQs

Internal Audit Services in the UAE

How can internal audit in the UAE protect businesses from heavy penalties under ESR, AML, and VAT compliance?

A robust internal audit in the UAE reviews whether your company is meeting
Economic Substance Regulation (ESR) filing, Anti-Money Laundering (AML) checks,
and VAT obligations. This proactive approach helps avoid fines, license suspensions,
and reputational damage—common risks for businesses that only react after
regulators intervene.

What gaps does a risk-based internal audit usually uncover in UAE companies?

Risk-based internal audits in the UAE often highlight weaknesses in procurement,
cash flow monitoring, payroll processing, and related-party transactions. These
areas are vulnerable to fraud, mismanagement, and regulatory breaches. Identifying
them early helps decision-makers strengthen controls and protect profitability.

Why do many SMEs in Dubai and Abu Dhabi outsource internal audit instead of building in-house teams?

Outsourced internal audit services in the UAE give SMEs access to experienced
auditors, advanced tools, and industry insights without the cost of maintaining a
permanent department. This approach ensures independence, higher-quality
assessments, and flexibility to scale audits as the business grows.

How does internal audit improve governance in UAE family-owned businesses?

Family businesses often face blurred decision-making and informal controls. Internal
audit brings structure through clear policies, segregation of duties, and transparent
reporting. This reduces conflict, protects minority shareholders, and reassures
investors about the company’s long-term sustainability.

Can internal audits in the UAE reduce fraud and asset misappropriation in high-risk sectors?

Yes. Internal audits evaluate controls around cash handling, inventory, vendor
payments, and expense claims—areas most prone to fraud. By closing loopholes
and improving monitoring, audits reduce opportunities for financial manipulation or
employee theft, safeguarding assets and shareholder value.

How do internal audits add value during mergers and acquisitions in the UAE?

For investors or buyers, internal audit findings provide clarity on hidden risks—such
as overstated revenues, unrecorded liabilities, or weak compliance frameworks. This
improves valuation accuracy and ensures smoother post-merger integration. Without
it, businesses risk costly surprises after acquisition.

What is the role of internal audit in preparing UAE businesses for external audits and inspections?

Internal audits act as a pre-audit review, checking whether financial statements, VAT filings, and compliance documents are accurate before statutory auditors or
regulators step in. This reduces audit adjustments, speeds up approvals, and boosts
investor and regulator confidence.

How frequently should UAE businesses conduct internal audits for maximum impact?

For highly regulated industries such as banking, logistics, and healthcare, quarterly
or semi-annual audits are advisable. SMEs in retail, trading, or services often benefit from annual audits. The frequency should align with transaction volume, regulatory
exposure, and management’s risk appetite.

Can technology-driven internal audits provide better insights for UAE companies handling large volumes of data?

Yes. Data analytics and automated audit tools allow auditors to review thousands of
transactions in minutes, flag anomalies, and provide real-time insights. This is
especially useful for UAE businesses in retail, e-commerce, or logistics, where
traditional sampling often misses hidden issues.

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Our Locations

Office - Dubai

Office 609, 6th Floor, Al Moosa Tower 1, Trade Centre 1, Sheikh Zayed Road, Dubai, UAE

Office - Sharjah

Sharjah Media City (Shams), Al Messaned, Al Bataeh, Sharjah, United Arab Emirates.