ICV Audits in UAE
ICV Certification UAE is a key component that ensures the elevation of the local economy through the inclusion of country-based services and supplies in the businesses. For that matter, ICV audits have become an essential component for businesses in the UAE. These audits ensure that the businesses comply with the requirement of ICV certification compliance in the UAE.
ICV Audits are performed by authorized certification bodies that have a permit from the government. In the UAE, such bodies are authorized by the UAE Ministry of Industry and Advanced Technology. Some of the auditing firms are BMS Auditing, Price Water House Coopers, KPMG, and Deloitte.
Purpose of ICV Audit
ICV Audit is done in order to check for compliance assessment. Reviewing the financial and business documents, verify the financial and other data, and ICV score assessments.
Know what is required to be in compliance with ICV regulations along with the ways the score can be improved. Businesses working in the UAE, if need an ICV certificate need to show their commitment to the local economy via many markers like procurement of goods and services from in country suppliers, inclusion of Emirati employees to enhance the local workforce, investing in national manufacturing and production capabilities, etc. The ICV certification in the UAE is applicable for one year, after that businesses need to maintain an annual audit to make sure their compliance.
Businesses are required to show the total budget that has been spent on procurement of local services and items in comparison of the goods and services they have imported internationally. High local procurement goes for high ICV score.
This means hiring the UAE nationals for employment. Businesses are compelled to hire the locals for their company, train them hence improving the skill development and employability for the locals.
Businesses must show their dedication towards investing in national industries, research and development, and innovation. This can be done in the shape of capital expenditures, adopting technology, and partnerships with local businesses.
Auditors gauge the extent to which businesses outsource their tasks to local subcontractors. The more local subcontractors’ businesses work with, the better the ICV compliance results are produced.
Ignoring the challenges at hand in ICV compliance can lead to serious problems during auditing.
Businesses must provide accurate and authentic documentation for ICV audits that may include financial statements, invoices, and contracts with national suppliers. Gaps and confusion in such records increases the potential of lowering ICV score or even non-compliance in extreme cases.
National suppliers and Emiratization can be heavy on budget for businesses. For instance, local supplies can be expensive as compared to international suppliers or companies may require to put efforts in training national employees to meet ICV targets.
For multinational companies with composite supply chains making sure that every procurement streamlines with ICV guidelines can be a tedious task. International suppliers sometimes do not have local manufacturing reducing a business’s chances to meet ICV compliance.
Businesses can follow few practices that ensures ICV compliance. These can be:
It’s important to know the penalties so that the issues that can lead to penalties can be escaped at right time.
Businesses have to work with certain accredited certification bodies permitted by the government in order to gain ICV certification in UAE. These auditing bodies perform the official audit and issue the certificate. The rigorous process involves submitting the financial statements, reviewing adherence to the compliance requirements, and after the findings are made, issuing of certificate.
To seamlessly meet ICV certification requirements in UAE and to ensure compliance with statutory regulations, businesses are advised to seek the expert services of premier ICV Consultants in UAE such as Farahat & Co. Thus, contact us today and we shall be glad to assist you.
ICV Audits examines the businesses or company’s efforts made in the local economy of UAE and it focuses on engagement with local suppliers, nationals’ employment, and investment in national industries.
All the relevant financial documents, employees’ records, payments and contracts documents.
Accredited audit firms permitted by UAE government perform the audit.
As the ICV Certificates are issued for a year, hence the audit should be done once a year as well.
Read More: Strategies to Enhance ICV score in UAE