From the Inside Out.
"An internal audit function that only tells management what it wants to hear is not an internal audit function — it is a liability. True internal audit adds value through honest, independent findings."
— Finerio Internal Audit Practice
Your In-House Watchdog, Working For You
Internal Audit is an independent function — within your organisation or outsourced to a specialist firm — that examines your business processes, financial controls, and risk management practices. Unlike external auditors who focus on the financial statements, internal auditors look at how the entire business operates: Are controls working? Are risks being managed? Are policies being followed? Are assets protected?
The Institute of Internal Auditors (IIA) defines internal audit as "an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations." Internal auditors review specific departments, processes, or risks — and report findings directly to the Audit Committee or Board, independent of management.
In the UAE, internal audit is mandatory for all listed companies, banks, insurance firms, and DIFC/ADGM regulated entities. It is also increasingly expected by private equity investors and lenders as a marker of governance quality. Finerio provides fully outsourced or co-sourced internal audit services.
Internal audit described in everyday business language
Boards, CFOs, and regulators describe internal audit using different terms — all referring to the same independent assurance and consulting function.
What We Deliver
A complete internal audit capability — from function setup and annual planning through to individual assignments and board reporting.
Key Activities in Every Audit Assignment
A practical breakdown of how Finerio executes each internal audit assignment — from planning through to final report and follow-up.
Risk Assessment & Scoping
Every assignment begins with a risk assessment of the area under review — understanding objectives, key risks, the control environment, and prior audit findings before defining the scope.
Audit Programme Design
We design a tailored audit programme — the specific tests, enquiries, and observations we will perform — aligned to the identified risks and control objectives for each assignment.
Fieldwork — Control Testing
We execute the audit programme: reviewing documents, interviewing staff, testing transactions, and observing processes — gathering evidence to support each finding.
Exception & Root Cause Analysis
Where weaknesses are identified, we perform root cause analysis — understanding why the failure occurred (design gap vs operating failure vs human error) to ensure recommendations address the right problem.
Draft Report Preparation
A structured draft report is prepared — executive summary, scope, findings, root causes, risk ratings, and recommendations — and shared with management for factual accuracy review.
Management Response & Action Plans
Management reviews draft findings and provides formal responses — agreeing corrective actions with responsible owners and target completion dates.
Final Report to Audit Committee
The final report, incorporating management responses, is issued to the Audit Committee or Board — providing a complete record of findings, commitments, and residual risks.
Follow-Up & Closure Testing
At agreed intervals (typically 90 days), we follow up to verify corrective actions have been implemented — and re-test controls where needed to confirm effectiveness.
Questions we hear from clients every week.
Clear answers to the most common questions about internal audit.
External audit is an independent examination of financial statements by a registered firm, providing an opinion for external stakeholders (shareholders, banks, regulators). Internal audit is an independent function examining the entire organisation — its processes, controls, risks, and governance — reporting to the Board or Audit Committee for the benefit of management and the board. External audit looks backward at reported numbers; internal audit looks forward at how the business is being run.
Internal audit is mandatory for all listed companies on the DFM and ADX (required by SCA regulations), all banks and financial institutions regulated by the CBUAE, all insurance companies, and all DIFC and ADGM regulated entities. For private companies, it is not legally mandated but is increasingly expected by lenders, PE investors, and sophisticated stakeholders. Many well-run private companies establish an internal audit function voluntarily as a governance best practice.
A risk-based audit plan is an annual schedule of internal audit assignments prioritised by risk level — rather than simply rotating through all departments on a fixed calendar. It begins with a formal risk assessment of the entire organisation — mapping all auditable areas, scoring each by the likelihood and impact of control failure, and allocating audit resources to the highest-risk areas first. This approach ensures internal audit focuses on what matters most to the business.
When fieldwork reveals indicators of fraud or serious irregularity, we immediately follow a defined escalation protocol — pausing the assignment, preserving evidence, and notifying the Audit Committee Chair or a designated board member directly (bypassing management if necessary). If a formal fraud investigation is required, we can either conduct it or recommend specialist forensic investigators. All such matters are handled with strict confidentiality and professional care.
Co-sourced internal audit means your organisation has an in-house internal audit resource but supplements it with Finerio's specialist team for assignments requiring additional expertise, capacity, or independence. Common arrangements include using us for IT audits, fraud risk assessments, or specialised process audits that require skills your in-house team doesn't have. Co-sourcing gives you the best of both worlds — internal knowledge plus external expertise — at a cost that reflects the actual work performed.
A well-structured internal audit report contains: (1) an Executive Summary with overall assessment and key findings; (2) Scope & Objectives; (3) Findings — each described with observation, root cause, risk rating, and recommendation; (4) Management Response — agreed actions with owners and target dates; (5) Finding Ratings — High, Medium, or Low. Reports are concise, action-oriented, and written in plain language designed to be read and acted on — not filed away.
Strengthening your control environment?
Whether you're setting up an internal audit function from scratch, co-sourcing specific assignments, or looking for an independent control review — let's talk. 📍