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Unit 10: Government and Independent Financial Audit: Comparison

Self Assessment Notes

Fill in the blanks:
13. Formation and expression of the independent audit opinion are conducted in compliance
with the …………………………………. .

14. Statutory auditors with whom a contract for independent financial audit is signed may be
dismissed only if ………………………………… exist.
15. The acceptance of obligation for performance of independent financial audit is documented
with a ……………………………….. of audit engagement.
16. The seal of the ………………………….. has an ellipsoid form.



Case Study COBIT- Government of Dubai Financial Audit
Department

T he Financial Audit Department (FAD) is the supreme audit institution of Dubai.
This office is headed by a Director General and reports to the Ruler of Dubai.

The FAD was established by the law No (1) of 1995 issued by His Highness the Ruler of
Dubai on 29 January 1995 and was subsequently amended by the Law No (5) of 2000.
Subsequent amendment by Law No. (3) of 2007 made FAD further independent, by
empowering a direct reporting channel to His Highness the Ruler of Dubai.
The audit jurisdiction of FAD covers all government departments, public corporations,
companies in which the Government shareholding is above 25 percent, organizations for
which the Government provides a financial subsidy, and/or any other body where an
audit is commissioned by His Highness the Ruler of Dubai.
The FAD conducts regular financial audits, information systems audits and performance
audits for ascertaining the extent of legality, adequacy of financial prudence and
management of financial operations. The objectives include reviewing of efficiency,
effectiveness and economy in planning, directing, execution, controlling and monitoring
of operations.

Dubai
Dubai is one of the seven emirates in the UAE, which is on the eastern coast of the Arabian
Peninsula in the south-western corner of the Arabian Gulf. The total area of the UAE is
approximately 77,700 square kilometres.
Dubai’s economic growth from 2000-2005 has been remarkable, with double-digit Gross
Domestic Product (GDP) growth and relatively high per capita income, despite negligible
dependence on oil. The driving force behind Dubai’s economic performance has been the
Government, through investments and other initiatives, supported by the private sector,
guided by Dubai Strategic Plan 2015. Since the year 2000, Dubai’s real GDP has been
growing at a compounded annual growth rate of 13 percent.
The FAD recognized the need to promote, formalize and improve IT governance practices
within Dubai as the extensive usage of information technology is widely accepted as an
essential component in providing services to citizens, residents and business entities.
Contd....

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