Abu Dhabi investment company Mubadala seeks auditors for increased oversight

Mubadala Development is struggling to recruit internal auditors required to oversee the company's performance.

Mubadala, a strategic investment company owned by the Abu Dhabi government, wants to step up its internal checks and balances. Stephen Lock / The National

Mubadala Development is facing a challenge recruiting internal auditors because of to a global shortage of audit professionals.
Mubadala, a strategic investment company owned by the Abu Dhabi Government, and Dubai World are among companies stepping up their internal checks and balances.
"There's a global shortage of internal auditors," said Joe Ioculano, the head of internal audit at Mubadala.
"My challenge is a global challenge and when I speak to the head of internal audit for any of the big four [KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte] they tell me the same thing."
Mubadala is keen to recruit a number of audit professionals to oversee operations within its portfolio of investments. As the first internal auditor at Mubadala, Mr Ioculano was hired in 2009 with a brief to promote efficiency, reduce the risk of asset loss and ensure the reliability of financial statements.
The Abu Dhabi Accountability Authority is advising government-related companies in the capital to improve internal auditing standards as part of the capital's 2030 master plan.
Globally, companies have become more interested in hiring accountants and other regulatory staff following a fraud scandal involving the US giant Enron and the later collapse of the financial services firm Lehman Brothers, as well as the worldwide financial downturn.
"Since the global financial crisis there has been emphasis on controls and governance and oversight," said Mr Ioculano. "Our mission at Mubadala is to help the company achieve objectives by minimising the risk of things going wrong."
Mubadala is looking to hire more experienced global auditors to enable the company to train Emiratis to fill the roles.
In the Gulf, the financial troubles of Dubai World, debt defaults of the Saudi conglomerates Saad and Al Gosaibi, and other corporate financial casualties have highlighted the need for better risk oversight.
In a sign of local demand for auditors, the UAE Internal Auditors Association (IAA) expects to double its membership numbers by the end of this year to about 800.
Staff of firms such as Dubai World, Emirates Group, Dubai Aluminium and Al-Futtaim Group are already members.
"We have all learnt very good lessons from the crisis," said Abdulqader Obaid Ali, the UAE president of the IAA and the chief of internal audit at Dubai World. "Now management are more willing to listen to us and read our reports."
The state-owned conglomerate Dubai World last month struck a US$24.9 billion (Dh91.45bn) debt restructuring agreement as it plots a new business strategy.
"We have the best entrepreneurial businessmen on our board of directors and are starting afresh and moving forward," said Mr Ali. "You cannot improve unless you change and adapt."
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