DUBAI: The UAE Internal Auditors Association (UAE-IAA) is working towards consolidating its cooperation with similar entities and bodies operating in India to strengthen the internal auditing and accounting sectors. Its desire for widening its cooperation base was evident during a joint symposium it organized in coordination with the Institute of Chartered Accountants of India’s (ICAI) Abu Dhabi Chapter on the fraud risk management and how to deal with its future challenges. It coincided with the UAE-IAA’s members meeting.
The two professional bodies explored ways to exchange knowledge and best practices at a time when the bilateral trade between the UAE and India is set to cross US$100 billion in 2020 from the current US$60 billion, and governments-level relations are reaching new heights. The UAE has become India’s third largest trading partner after the US and China.
“Our accounting professionals will immensely benefit from the association with the ICAI, which is the second largest professional Accounting & Finance body in the world. By sharing knowledge with the Institute members will help our members learn best practices and keep abreast of the latest trends in the accounting eco system,” said UAE IAA Chairman Abdulqader Obaid Ali.
The ICAI is the national professional accounting body of India, with 282,193 members, mandated to regulate the profession of chartered accountancy.
“The collaboration with UAE IAA will help the accounting professionals to learn from the experience and knowledge of IAA members for us to raise our standards in our endeavor to take the Chapter to further heights and to raise the profile of the Chapter amongst various associations in the UAE,” said Ashish Bhandari, Chairman of ICAI-Abu Dhabi Chapter.
UAE IAA, a non-profit organization of internal auditors, was set up in 1995 along the lines of its parent body, the Institute of Internal Auditors (IIA Global) with 200,000 members from more than 190 countries and organizations. The UAE accounts for about 45 per cent of the total number of internal auditors working in the region, estimated at about 7,000 auditors, of which 22 percent are Emiratis.
The Abu Dhabi event under the theme of ‘ Explore the Possibilities” was attended by more than 200 professionals from the UAE IAA and the ICAI.
In their presentation on Fraud Risk Management, Scott Garnett, Director, Risk Advisory Services, and Esha D’souza Senior Manager, Risk Advisory Services, of Mayur Batra Group, said understanding the common characteristics of fraud offenders can help organizations improve their ability to detect fraud and minimize their risk of loss. Fraud schemes can involve the intentional misreporting of an organization’s financial/non-financial information with the intent to mislead others, such as creating fictitious revenue and concealing liabilities or revenue.
A Fraud Risk Management Program is defined as a process of understanding and managing fraud related risks that organizations are subjected to in endeavoring to achieve its objectives. A constructive business driven fraud risk management framework and approach, including anti-fraud initiatives, provides an organization with tools to manage the risk in a manner consistent with regulatory requirements as well as the entity’s business needs and market place expectation.
An effective Anti-Fraud Strategy has four key components – prevention, detection, deterrence and response, which are closely interlinked and play a significant role in combating fraud. Internal auditors hold a key role in detecting frauds at an early stage, enabling companies to save substantial amounts by avoiding losses that may otherwise arise out of frauds. PR