(MENAFN- Mid-East) Pulse of Internal Audit Survey Report UAE – 2024 highlights that 76% of respondents indicated Audit Committee support for proactive innovation within Internal Audit function.
Dubai, UAE: Protiviti Member Firm for the Middle East Region and the UAE Internal Auditors Association (UAE IAA) today released the“Pulse of Internal Audit Survey Report UAE-2024.” The report sheds light on how Internal Audit (IA) functions across the UAE are navigating a rapidly evolving business landscape marked by technological disruptions, sustainability imperatives, and heightened risk complexities.
Sanjay Rajagopalan, Managing Director, Protiviti, expressed,“We worked with UAE IAA on our Pulse Survey Report. It shows how internal audit has evolved in the UAE as business dynamics keep changing. Internal audit now focuses on giving confidence and, most importantly, advice, meeting today's business needs by looking at old ways again and being ready for the future, new ideas, and bigger plans.”
According to the survey, an overwhelming 92% of respondents recognize the value addition of Internal Audit through assurance, consulting activities, and promoting a robust governance culture within their organizations. This reiterates the importance of Internal Audit function, beyond just assurance.
Highlighting the importance of Internal Audit, Abdulqader Ali, Chairman of the Board, UAE IAA, emphasized,“Internal audits play a vital role in UAE businesses, ensuring compliance, optimizing procedures, and enhancing stakeholder confidence. This report underscores the indispensable function of Internal Audit in stimulating innovation, fortifying resilience, and staying ahead of digital progressions. As an entity, our dedication to aiding UAE organizations in elevating their internal audit capabilities remains unwavering.”
The survey results emphasize the urgent need for IA functions to bolster digital transformation and automation efforts. Although 76% of respondents indicated Audit Committee backing for proactive innovation within IA, a considerable 47% identified themselves as digital sceptics or beginners, underscoring a notable deficit in digital maturity.
A key revelation from the survey is the gap between the growing emphasis on technology risks and the absence of specialized IT audit skills within organizations. Despite 38% of respondents indicating that 25-50% of their audit plan addresses technology risks, 52% of organisations lack personnel equipped with essential IT and cybersecurity expertise within their Internal Audit function. This disparity underscores the immediate necessity for Internal Audit teams to enhance their technological competencies in order to adeptly evaluate and mitigate evolving digital risks.
Manish Laligam, Managing Director, Protiviti, underscored the pivotal role of IA function in organizations' digital transformation journey. He further emphasized the need to strengthen expertise in data analytics, cybersecurity, and emerging technologies like AI and automation to enable comprehensive risk assessments and advisory services. He also highlighted the crucial mandate of updating the audit workforce's skills to match technological progress.
On the sustainability front, Environmental, Social, and Governance (ESG) reporting is gaining traction. While 44% of IA functions play a significant role in assuring ESG reporting and associated risks, 65% of respondents face challenges due to expertise gaps and a lack of relevant data. This underscores the necessity for organizations to invest in nurturing ESG competencies within their Internal Audit teams and establishing effective data collection mechanisms.
While most organizations (71%) have formal processes in place to identify and prioritize top risks, a staggering 82% acknowledged the presence of unanticipated risks that require continuous management attention throughout the year. These findings emphasize the dynamic nature of risks in today's business landscape, necessitating a shift towards more frequent and agile risk assessments to stay ahead of emerging threats and uncertainties.
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