In UAE, an ICV Audit is conducted by a certified ICV auditor to assess a company's compliance with the ADNOC's ICV Certification program requirements. Introduced by the Abu Dhabi National Oil Company (ADNOC) in January 2018, the ICV Program aims to boost the contribution of local companies and nationals to the UAE's economy.
Under the ICV Program, companies must meet a minimum threshold of in-country value for their goods and services. This refers to the total spend retained in the UAE, benefiting the local economy. It encompasses local spending on goods and services, local employment of UAE nationals, and the transfer of knowledge and technology to the UAE.
To demonstrate compliance with the ICV Program, companies require an ICV (In-Country Value) Audit in UAE.
What is ICV Audit in UAE?
A CV Audit is necessary for companies operating in the UAE to showcase their adherence to the ICV Program. Certified ICV auditors conduct ICV Audits to ensure companies meet program requirements.
During the audit, the auditor examines the company's financial statements, procurement records, employee records, and other pertinent documents. This assessment determines the company's ICV score, representing the percentage of total spending retained in the UAE.
ICV Audit Services in UAE
The ICV Audit is compulsory for companies engaged with ADNOC, its subsidiaries, and other UAE government entities adopting the ICV Program. Maintaining a high ICV score is crucial for winning or renewing contracts with these entities. The audit helps identify system gaps and errors for rectification. ADNOC mandates ICV audits for all suppliers as part of its In-Country Value (ICV) program, aiming for localization, increased employment, and economic growth in the oil and gas sector.
The primary objectives of ICV Audit in UAE, as per the government, include:
- Emiratization: Creating job opportunities for Emiratis in the private sector.
- GDP Diversification: Promoting sourcing of goods and services within the country to support economic diversification.
- Strategic considerations: Localizing critical parts of the value chain for specific business categories.
ICV Certification in UAE
ICV (In-Country Value) Certification in the UAE acknowledges companies that have successfully completed an ICV Audit and demonstrated compliance with ICV Program requirements. To obtain ICV Certification, companies must undergo an audit by a certified ICV auditor.
According to ADNOC's ICV program, all ADNOC suppliers must declare their ICV achievement (ICV Certificate), requiring annual third-party confirmation.
Key objectives of ICV Certification include:
- Increasing workforce nationalization and local goods and services expenditure.
- Evaluating risks and safeguarding assets.
ICV assessment is now integral to ADNOC's tender evaluation and award process, with third-party verification of ICV Certificate numbers required annually.
Innovate Accounting, a leading ICV Certifying body in the UAE, offers ICV Certification Services to businesses. This includes assessing their business, conducting ICV Audits, and managing their ICV Score to ensure compliance with country regulations, thereby supporting businesses comprehensively.
ICV Audit Procedure in UAE
The ICV Audit process in the UAE is a formal review conducted by a certified ICV auditor to assess a company's compliance with ICV Program requirements. The process entails defining the audit scope, gathering relevant data, reviewing the data, calculating the ICV score, preparing an audit report, and issuing ICV Certification.
Companies achieving a high ICV score upon passing the audit are eligible for ICV Certification, valid for one year and renewable upon successful completion of another ICV Audit.
To ensure ongoing compliance with ICV requirements, companies may undergo follow-up audits and monitoring by the ICV auditor.
ICV Audit and Certification are vital for companies working with ADNOC, its subsidiaries, and other UAE government entities adopting the ICV Program. It signifies their commitment to local economic contribution and enhances their contract procurement prospects with these entities.
Approved ICV Auditors in UAE
Approved ICV Auditors in the UAE are professionals certified by the Abu Dhabi National Oil Company (ADNOC) to perform ICV Audits for companies in the region. These auditors are impartial and independent, playing a crucial role in assessing a company's adherence to ICV Program requirements.
Utilizing a systematic and thorough approach, ICV Auditors evaluate a company's spending and its contribution to the local economy. They analyze data and documentation to calculate the company's ICV score, reflecting the proportion of total spending retained within the UAE.
ICV certification can only be obtained from an approved ICV auditor or audit firm. BMS Auditing boasts an expert team of approved ICV auditors, providing comprehensive ICV audit services in the UAE.
Our ICV Auditors may conduct follow-up audits and monitoring to ensure continued compliance with ICV requirements. They also offer guidance and recommendations to help companies improve their ICV score and enhance their contribution to the local economy. Explore our range of audit services in Dubai for more information.
