Process audit: Review of processes by any Auditors in UAE

Posted by All Around Moving on April 6th, 2022

Reviewing processes is part of the classic and recurring work of internal audit. During each mission, it is a question of understanding the ways in which things are done, of testing the processes, and of formulating recommendations if necessary. Process analysis is therefore essential for any auditor even if it is not easy. Indeed, the approach being based above all on a description of the tasks carried out, this can very quickly lead to developments which are at least complex when one is in a large organization. In addition, the audit must take the necessary distance to assess the quality of the processes and detect any malfunctions. It is therefore not only a question of distance from the audited object, but also and above all skills and experience to be able to assess what is. These requirements can worry the young auditor who has just graduated and who very quickly finds himself in an interview with an experienced service manager to obtain information on the processes. Whether he is reassured (or not!), The review of processes is always a delicate exercise even after several years of audit experience ... It is therefore never useless to regularly wonder about what a process is. in order to identify the axes of control whatever the audited business.

 A definition of the process

 A process represents one or more activities the achievement of which contributes to the achievement of an objective. For example, the way of granting a loan for a bank can be a process grouping together several activities ranging from the interview led by the bank advisor to the signing of the contract, including the assessment of the risk represented by the client. to set the interest rate. A process is thus characterized by the activities that compose it, but not only. Other elements interact in the execution of operational tasks: actors, allocated resources, external events. A process is also conditioned by the objective to be achieved and the result it generates. Finally, the processes can be differentiated according to their relation to the added value of the organization.

  General audit points in terms of process reviews

 On the basis of the characteristics set out above, the internal auditor may perform the following verifications for any assignment:

1. Concordance between the activities and the defined objectives  : this is to ensure that the process as a whole is effective. The internal auditor can even go further in his work by assessing whether the number of activities and processing times are appropriate in relation to the objectives determined in order to measure the efficiency of the process;

1. capacity of the actors to handle all the activities  : the auditor will check that the employees are authorized to handle the tasks, that their missions are formalized by job descriptions, that all the required skills are met, in particular through training, for carrying out activities;

1. relevance of the resources committed  : the audit will check that the resources allocated to the activities are necessary and sufficient in view of the objectives assigned to the audited business;

1. Prevention of the impacts inherent in external events  : the process is an operational process according to a predetermined scheme and sequence of tasks. However, any process is exposed to exogenous events that could impact the smooth running of operations, hence the need to put in place a preventive system. The auditor will therefore assess the coverage of operational risks intended to preserve the efficiency of the processes;

1. Soundness of the indicators: even if a process is based on a mechanistic approach, it is nonetheless necessary to ensure regularly that the activities actually contribute to the achievement of the missions. This supervision is possible on the basis of indicators, provided that they are consistent with the nature of the process (operational, support, management) and the assigned objectives. The Auditors in Dubai will therefore try to verify that the management of activities is based on adequate measurement instruments.