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In participation with Legal Department
Internal Audit is the first line
of defense against fraud in
public institutions
The federal government bodies manage AED billions of public funds annually; therefore, they
assume national responsibilities for protection of these funds and making sure of proper usage.
Fraud is one of the serious problems that negatively affects government activities and results in
huge costs incurred from actual financial loss.
Crime of different kinds and forms traditional and modern is a great concern of both
communities and governments because it disturb safe people lives and hinders human
communities’ development and progress.
However, fraud crime is different from traditional crimes that require intellectual criminal
abilities in updating and upgrading fraud methods and to adapt such methods to suit new
modern technologies and economic social changes in other human life aspects.
Control Bodies Roles
The control bodies main duties and
responsibilities are to followuppublic funds
expenditure properly and economically as
per rules and regulations applicable.
In order to control bodies play a significant
role, they should be independent from
other entities under their control and to
have protection from any kind of external
influences.
It is also important that the control bodies
use scientific knowledge-based control
methods and techniques in addition, the
auditors should have highly professional
qualifications required beside to integrity
and ethics. Moreover, a government
independent
control
bodies
with
professional personnel and methodologies
is only way that ensures reliable objective
impartial financial audit reports.
Organizational position of internal
auditor
The internal auditor organizational
position affects his abilities to achieve
independence
and
objectiveness.
However, the organizational position
of internal audit department is different
from organization to another and from
country to another which based on such
organizations development in keeping
up with the latest control systems. It is
usually under direct supervision of higher
management, board of directors or audit
committee.
Experts say in this regard that the best
normal case that the internal audit should
report to the highest administrative level in
the organization such as board of directors
or audit committee.
Some studies concluded that the higher
organizational position of internal
audit in organizational structure of the
economic unit, the greater the return
of internal audit activities over such
activities costs. No doubt, the updates
introduced to the internal audit require
a parallel development in professional
specifications and requirements, and it
is necessary to use scientific methods
in developing the internal auditors’
performance and experiences through
suitable policies, training, and certification
based on basic studies of administration
and accounting.
The internal auditors should also express
the highest objective levels in collection
and evaluation of evidences and