What is the role of internal audit in business?

Internal audit checks control systems, governance, risk management, and financial records to add value to business operations.

How does segregation of duty prevent fraud?

By dividing responsibilities among employees, it ensures no single person can hide errors or commit fraud.

Why is MIS important in internal auditing?

MIS reports give top management real-time comparisons of performance, revenues, and expenses.

Can internal audit detect payroll fraud?

Yes, internal audits often identify ghost employees, false claims, or unauthorized salary payments.

Who provides internal audit services in Dubai?

Mubarak Al Ketbi (MAK) Auditing provides expert internal auditing and compliance services across the UAE.

FAQs Internal Audit Value to Business MAK Auditing

Ways in Which Internal Audit Will Give Added Value to the Business

Internal audit value to business is one of the most important factors for growth in UAE companies. Internal auditing checks business operations, governance, risk management, and control systems. It makes sure that accounting records are reliable, risks are minimized, and fraud is prevented. Internal audit is not just about numbers; it also supports the culture, ethics, and long-term strategy of the business.

Mubarak Al Ketbi (MAK) Auditing provides internal audit services in Dubai that focus on transparency, accuracy, and compliance with UAE regulations.

Setting up Control Procedures

Internal audit helps to set up systems that prevent fraud, mistakes, and losses. These controls are developed in steps:

Set clear objectives for internal control systems.
Provide a proper control environment where employees are trained.
Assess risks and identify possible issues.
Implement control activities and review procedures.
Communicate results to senior management.
Monitor and test procedures regularly.

Benefits of Internal Control Procedures

Ensures operational efficiency.
Increases compliance with company policies.
Protects accuracy of financial data.
Prevents fraud and employee theft.
Safeguards business assets.

Segregation of Duty

Segregation of duty divides responsibilities among employees. It avoids fraud because no single person controls all tasks.

Bookkeeping, auditing, and accounting are shared among workers.
Errors are detected faster when work is cross-checked.
Fraud is harder to hide when duties are divided.
Creates a clear chain of authority within the company.

This system builds transparency and increases trust in the organization.

Management Information System (MIS)

A MIS report compares actual results with company goals. Senior management uses this report to:

Track revenues and expenses.
Identify weak areas.
Communicate with departments.
Improve decision-making.

MIS connects the top management with different departments, ensuring a smooth flow of information.

Relevance of Internal Audit for Preventing Fraud

Internal auditing is one of the most effective fraud prevention tools. It sets strong ethics and integrity in daily operations. If fraud risk is detected, a detailed investigation begins.

Areas Where Internal Audit Prevents Fraud

Company annual revenue manipulation.
Vendor fraud or supplier collusion.
Accounts payable fraud.
Payroll fraud and ghost employees.
Bribery, corruption, or asset misuse.

By creating strict internal policies, companies can reduce fraud risk significantly.

Benefits of Internal Auditing for Businesses in UAE

Ensures compliance with UAE tax and audit laws.
Builds trust with investors and stakeholders.
Improves corporate governance.
Enhances efficiency and reduces costs.
Provides accurate data for decision-making.
Protects against penalties and fraud.

🥇 What Can Help – Mubarak Al Ketbi (MAK) Auditing

At Mubarak Al Ketbi (MAK) Auditing, we deliver professional internal audit services that improve compliance, detect fraud, and increase efficiency.

As the saying goes, “An ounce of prevention is worth a pound of cure,” internal audit ensures your business avoids big risks with timely checks.

For more information visit our office:

📍 Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
📞 Contact/WhatsApp: +971 50 276 2132

FAQs Internal Audit Value to Business MAK Auditing

When can I claim a VAT adjustment for bad debt?

You can claim the adjustment if you’ve issued a proper tax invoice, paid VAT to FTA, written off the receivable in your books, waited six months from the supply date, and notified the customer.

What evidence must I keep for a bad debt VAT claim?

You must keep: • Tax invoices • Proof of VAT payment • Accounting records showing the write-off • Copies of communication with the customer

How do I report the VAT adjustment in my return?

Use the adjustment column in Box 1 of your VAT return for each relevant emirate. Enter the VAT amount you want to reclaim.

What if the customer pays after I’ve claimed bad debt relief?

If the customer later pays, you must declare the VAT for that payment in your next VAT return.

How can Mubarak Al Ketbi (MAK) Auditing help with bad debt VAT adjustments?

We check your eligibility, review your records, prepare your VAT return, and make sure you follow every law to reclaim your VAT with no headaches.