Internal auditing is one of the most important departments of any business organization. It is meant to watch the organization is working efficiently while managing the risks and complying with the rules and regulations defined by the authorities. Managing the internal control systems is also an important responsibility of the internal auditors.
In developed countries like the United Arab Emirates, internal auditors are stressed to explore the emerging challenges and risks that can cause a threat to business operations. They do not only have to find the risks but also plan beforehand for their solution. Doing so requires the identification of risks, which is not quite easy.
This article aims to discuss the key risks ahead of the internal auditors in the year 2020.
Top 5 Risks Internal Auditors Need To Watch Out In 2020
In the not-so-distant past, the only responsibility of the internal auditors was to watch the risk management and compliance of the business organization. They had to ensure that all the functions were being performed efficiently, and there is no mistake that will be held the business authorities accountable for legal matters. However, looking for emerging risks and managing them is now one of their prime responsibilities.
The following are some of the top risks that the internal auditors need to watch out in the year 2020.
1. Digitalization of Businesses
The technological, as well as non-technological advancement of the world, has put great pressure on the business organizations. They have to digitalize their operations to stay competitive and progressive in the industry. Moreover, most of the organizations feel the pressures of investing in technological sector to maximize their profits.
In such a scenario, the internal auditors have the responsibility of ensuring that the organization is making a safe and beneficial investment. They also have to mitigate risks in the digitalization process to ensure long term success. So, organizations often rely on professional support from the top audit firms in Dubai to handle such issues and continue on the path to progress.
2. Cybersecurity and Data Privacy
One of the most important risks that the internal auditors need to watch out for 2020 is cybersecurity and data privacy. This is a rising concern in other fields of life as well. So, the organizations need to pay more attention to their IT infrastructure and department to watch for the progress.
In such a scenario, the internal auditors have the responsibility to penetrate selected IT assets, as well as plan for the emerging challenges in the IT environment. They also need to evaluate the efficiency of third party security providers.
3. Compliance with Regulatory Changes
Another important risk that the internal auditors need to watch out in the present conditions is compliance with regulatory changes. The world is passing through one of the most difficult times of its history due to the pandemic. Every business is struggling in one or the other way.
Moreover, the authorities are revising the condition regarding regulatory changes to provide even a little support. The internal auditors also need to play their role efficiently and ensure that the organizations are complying with the regulatory changes effectively.
4. Treasury Management
Treasury management is one of the most important responsibilities of internal auditors. It is also one of the greatest risks ahead of the internal auditors in 2020. It is even more important during this pandemic stricken era.
The internal auditors have to play their role efficiently to manage their treasury. Only then they will be able to continue their operations and come out progressive of this difficult time period.
5. Handling Mergers and Acquisitions
Satisfying all the stakeholders while managing business affairs efficiently is an important responsibility of the organizations. Failing to do so forces them to consider the option of merger and acquisitions. This is a risky matter which requires due diligence to avoid future complains and issues on the part of the stakeholders.
If you are also facing any such condition, it is much better to get in contact with the professionals. You can acquire the services of top audit firms in Dubai and review the transactions, financial information, and internal controls effectively. It will also ensure the transparency of the merger and acquisition process.
Watch out for the internal auditing risks to maximize your profit!
It would not be wrong to say that auditing is the backbone of any business organization. Internal auditing has more responsibility on its shoulders. If the auditing department of an organization is not efficient and transparent, it can survive longer. Now, the auditing department has to even prepare for the future.
It has to explore the emerging risks and comply with the required changes to ensure the smooth functioning of the organization. In such a situation, relying on the workforce that is still in the learning process is not a wise choice. You should rely on the professionals and ensure efficient management of your business affairs.