Comprehensive accounting and finance solutions to streamline operations, improve cash flow, ensure compliance, and support sustainable business growth and profitability

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Internal Auditing

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Strengthen your business with professional audit and assurance services designed for UAE businesses. We help you improve compliance, identify risks, verify financial accuracy, and maintain transparency through Due Diligence Audits, External Audits, Internal Auditing, VAT Audits, Risk Assessments, and Special Audit services.

+971 58 854 9271

info@jasmaccounting.ae

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Internal Auditing Assurance & Consulting Services

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.
Internal Audit

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.

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 JASM ACCOUNTING & BOOKKEEPING LLC, 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.

Frequently Asked Questions

A due diligence audit goes beyond reviewing financial statements. It assesses cash flow reliability, asset quality, debt exposure, and hidden liabilities to determine the true value of a business. This helps investors, buyers, or partners in the UAE negotiate with confidence.

Yes. Due diligence carefully reviews VAT submissions, corporate tax filings, transfer pricing, and exemptions. It identifies unpaid taxes, penalties, or potential disputes with the FTA, helping you avoid future financial and reputational risks.

The audit evaluates trade licenses, labor compliance, litigation history, shareholder agreements, and regulatory obligations. This ensures you are not exposed to contractual disputes, hidden lawsuits, or regulatory penalties after the transaction.

A due diligence audit provides full visibility on assets, liabilities, contracts, and compliance records. It helps investors and buyers renegotiate deal terms, adjust purchase prices, or withdraw from risky acquisitions before committing capital.

Yes. Contract reviews during due diligence identify termination clauses, exclusivity risks, overcommitments, and hidden liabilities. This allows you to evaluate how supplier and customer contracts will impact your long-term financial stability and operations.

Even if you are not in a transaction, conducting an internal due diligence audit every 12–18 months helps identify weaknesses in governance, strengthen compliance, and prepare the company for future investors or financing opportunities.

Key financial red flags include overstated revenue, understated expenses, inaccurate inventory valuation, excessive debt, related-party transactions, and poor cash flow management. Detecting these issues early protects you from overpaying or facing unexpected risks.

The timeline depends on business size and complexity. A small or mid-sized company may take 2–3 weeks, while larger enterprises or multi-entity structures may require 6–8 weeks for a comprehensive review.

Accounting Software We Use

We coordinate directly with government authorities to keep your approvals, documentation, and procedures moving without delays.

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Commit the plan to paper and then keep it with you at all times. Review it regularly and ensure that every step takes you closer to your Goal.

Mellissa
Doe Analyst

Exceptional financial expertise has improved our accounting accuracy, providing valuable insights for smarter business decisions.

John Doe
Director

Professional financial services have streamlined our accounting, providing clearer insights and supporting better future decisions.

Paul Flavius
Coordinator

Commit the plan to paper and then keep it with you at all times. Review it regularly and ensure that every step takes you closer to your Goal.

Mellissa
Doe Analyst

Exceptional financial expertise has improved our accounting accuracy, providing valuable insights for smarter business decisions.

John Doe
Director

Professional financial services have streamlined our accounting, providing clearer insights and supporting better future decisions.

Paul Flavius
Coordinator

Commit the plan to paper and then keep it with you at all times. Review it regularly and ensure that every step takes you closer to your Goal.

Mellissa
Doe Analyst

Exceptional financial expertise has improved our accounting accuracy, providing valuable insights for smarter business decisions.

John Doe
Director

Professional financial services have streamlined our accounting, providing clearer insights and supporting better future decisions.

Paul Flavius
Coordinator

Commit the plan to paper and then keep it with you at all times. Review it regularly and ensure that every step takes you closer to your Goal.

Mellissa
Doe Analyst

Exceptional financial expertise has improved our accounting accuracy, providing valuable insights for smarter business decisions.

John Doe
Director

Professional financial services have streamlined our accounting, providing clearer insights and supporting better future decisions.

Paul Flavius
Coordinator
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