ADAA Enhances Internal Audit Rules For Improved Governance And Efficiency In Public Entities

Abu Dhabi Accountability Authority (ADAA) has revised the Internal Audit Rules for entities under its jurisdiction. This update aims to improve the quality and efficiency of internal audits, ensuring better governance and accountability. The new framework is designed to protect public resources and promote their optimal use.

A key change is the introduction of continuous auditing for financial and operational activities. This approach ensures that entities under ADAA's mandate maintain efficiency, transparency, and can respond promptly to risks. Additionally, the risk assessment process now includes evaluating financial and operational processes based on performance, past audit results, and their alignment with strategic goals.

The role of internal audits in financial auditing has been strengthened. Internal auditors will now participate in appointing statutory auditors and monitoring financial audit outcomes. This involvement aims to enhance the quality of financial audits within these entities.

Performance Indicators and Digital Integration

Internal audit units will see improved performance indicators to bolster their role in safeguarding public funds. The effectiveness of internal controls is also expected to rise. Moreover, integrating digital transformation into internal audit agendas is emphasized, promoting data analytics for more precise oversight.

Regulation of Audit Firms

The updated rules also regulate how audit firms are appointed to provide internal audit services. This regulation ensures transparency and high-quality audit outcomes across entities subject to ADAA's mandate.

This revision follows the initial release of these rules in 2021. It aims to enhance internal auditing's effectiveness and deliver added value by establishing a cohesive framework for all involved entities.

With inputs from WAM