The Lack of an internal audit department in a company called Mawarid Research Paper

The Lack of an internal audit department in a company called Mawarid Islamic finance in the UAE - Research Paper Example In accordance with the issues discussed in the paper Mawarid Finance’s strategy focuses on supporting and developing the national economy through the provision of Islamic financial services and products for small and medium enterprises (SMEs), which form the backbone of a nation’s economy, to enable them to develop, grow stronger and faster. The organization specializes in developing Shariah complaint economical or financial services. It provides eMurabaha that allows its clients to buy the goods offline or online; financing for the purchase of the items; letter of guarantee covering bib; online labor guarantees, and advance payment bonds, together with guarantees for the retention monies, customs duty, labor, home financing, maintenance. Moreover, it offers vehicle and property financing for people, and different services to the corporate sector, which include working capital, assets, deposits, trading activities and financing projects. Mawarid Finance is the only UAEà ¢â‚¬â„¢s financial institution that is absolutely independent. However, in an attempt to ensuring that it hands itself operational independence, we find that the distribution of its shares has been done across over three hundred and fifty shareholders, whereby organizations or even companies own less than five percent each of the capital there is no stake of an individual shareholder that is more than two and half percent. (English 54). Problem Statement: Lack of internal auditors has appeared as one of the fundamental factors that have led to misappropriation of funds in several companies and organizations. That is why several companies and organizations have adopted it to help in bringing accountability, so that each money spent can be accounted for. Background and Significance: Internal auditors play a very crucial role in the corporate governance of their organizations, financial reporting processes, analysis of risk management and internal control structure. During the last dec ade, they actively offered management with assurance and consulting services to help in conformity with the laws like the 2002 U.S. Sarbanes-Oxley. The internal audit resources have also seen expansion for the purposes of satisfying the increasing demand for the services to facilitate financial report and internal control’s executive certifications. In the future years, it might be expected of the internal auditors to broaden their role to responsibilities such as the improvement of risk management, reduction of organizational costs and complexity, and participation in the development of governance and strategic processes. For instance, the rules of Proxy Disclosure Enhancements of the United States Securities and Exchange Commission to reveal their governance measures, which include the structure of their board, the board’s supervision of risk management as well as its relationship with the executive practices and policies of compensation. The new proxy rules will act ually exert pressure or compel the boards to show their role in the supervision of risk management, and further, this presents both opportunities and challenges for the CAEs (chief audit executives) and their

Performance Measurement System in Julphar Company Term Paper

Performance Measurement System in Julphar Company - Term Paper Example RAK Ceramics is a company based in United Arab Emirates (UAE). The company was established in 1989 by Abdallah Massaad. The Company has been able to establish itself as the world’s largest ceramic manufacturing companies in a span of 20 years. The factory is however situated in the Arabian dessert. The products that RAK Ceramics has been offering consist of tableware, porcelain tiles, sanitary ware, bath ware, fittings, adhesive and faucets (Attwood â€Å"Racking up Miles for Tiles†). The Company operates in several countries of Asia as well as Middle-East such as, Bangladesh, Iran, India, Sudan, China, etc. In this study the performance of this company would be measured and analysed with respect to its customer satisfaction ability, improvement activities, internal process, employee satisfaction, competition handling, and innovation (â€Å"Company Profile†). Problem Statement It not necessary that every research study is developed to discuss problems and challen ges. Sometimes even they are even designed to evaluate and analyse situation, such as performance of a company. As in this case, the performance management system of the ceramic manufacturing company, RAK Ceramic would be analysed through statistical tools. ... Internal Process The internal process of RAKCeramics is mainly based on its technology integrated business model. The strength lies in the speed of improvement that the company manages and supplies the product to the market as soon as customers demand. The company owns 10 factories, which is well equipped with the most modern machineries. 8000 bath wares are manufactures every day in three plants in the similar location. Production and distribution is well-managed through IT based supply chain (â€Å"Corporate Profile†). Innovation RAK Ceramics’ core competency is offering innovative products and unique designs to its customers using technology. The strategy of the company is to innovate and introduce new designs for the customers is a strategy for improving performance. They are also utilising scan coding system for allowing customers to utilise their smart phones for scanning the QR code in the advertisement and directly visit the website of the company. They are also developing a mobile tool called iDesign, where customers can design their incorporate their own designs for customisation (Hankir â€Å"RAK Ceramics CEO Sees No Slowdown in U.A.E; Plans India IPO to Build Plant†). Improvement activities The demand for RAK Ceramics is continuously rising, so the company is looking forward to improve their manufacturing capacity by augmenting its power infrastructure. Several new power plants is planned to be launched in emirates in order to utilise sustainable sources of energy to respect the environmental concerns and maintain efficiency. The requirement for more power capacity was also identified in summers by the company