ICV Audit in UAE

An ICV Audit is conducted by a certified ICV auditor in UAE to verify the compliance of a company with the ADNOC's ICV Certification program requirements. The ICV Program was introduced by the Abu Dhabi National Oil Company (ADNOC) in January 2018 and is aimed at increasing the contribution of local companies and nationals to the UAE's economy.

The ICV Program requires companies to meet a minimum threshold of in-country value for their goods and services, which is defined as the total spend retained in the UAE that benefits the local economy. This includes local spending on goods and services, local employment of UAE nationals, and the transfer of knowledge and technology to the UAE. Companies need an ICV (In-Country Value) Audit in UAE to demonstrate their compliance with this ICV Program.

What is ICV Audit in UAE?

ICV Audit is a process that is required for companies operating in the UAE to demonstrate their compliance with the ICV Program. An ICV Audit is conducted by a certified ICV auditor to verify the compliance of a company with the ICV Program requirements.

The auditor will review the company's financial statements, procurement records, employee records, and other relevant documents to determine the company's ICV score. The ICV score reflects the percentage of a company's total spending that has been retained in the UAE.

ICV Audit Services in UAE

The ICV Audit is mandatory for companies that are working with ADNOC and its subsidiaries, as well as other government entities in the UAE that have adopted the ICV Program. It is important for companies to maintain a high ICV score as it may impact their ability to win contracts or renew existing contracts with these entities.

An ICV audit will help companies identify gaps within the system, and rectify errors. All ADNOC suppliers are required to get their ICV audit. ADNOC has initiated an In-country Value program (ICV) with the objective of Localization and creating more employment and job opportunities for and boosting the economy and the localization of important functionalities in the field of oil and gas.

According to the government, the primary objective of ICV Audit in UAE are,

• Emiratization: Generating more employment opportunities for Emiratis in the private sector
  
• GDP Diversification: More goods and services are sourced within the country, in a move to support diversification
  
• Strategic considerations: Critical parts of the value chain are localized for certain categories of businesses

ICV Certification in UAE

ICV (In-Country Value) Certification in UAE is a formal recognition given to companies that have successfully undergone an ICV Audit and demonstrated their compliance with the ICV Program requirements. To obtain ICV Certification, companies must undergo an ICV Audit by a certified ICV auditor.

As per ADNOC’s ICV program, all ADNOC suppliers are mandatory to pronounce their ICV achievement (ICV Certificate). ADNOC needs an annual third-party confirmation of the numbers of the ICV Certificate to be accompanied.

• • • Increasing Randomization and increasing the services of the national workforce.
      
    • Increasing in-country expenses on local goods and services.
      
    • Evaluates Risks and Protect Assets.

The ICV assessment now forms an integral part of ADNOC’s tender evaluation and award process. ADNOC requires third-party verification of the numbers in the ICV Certificate to be conducted by one of its Certifying Bodies on an annual basis.

BMS Auditing, one of the top ICV Certifying bodies in UAE offers ICV Certification Services to businesses by assessing their business, conducting ICV Audit, and managing their ICV Score to comply with the regulations of the country, thus supporting the business to a greater extent. 

Key Points on ICV Certification

• ICV certification is based on the last audited IFRS financial statements of the entities and shall not be older than 2 years from the certification year.
  
  
• For newly established companies (less than 10 months old), that do not have audited financial statements, the management accounts for a period of up to 10 months can be considered for ICV calculations.
  
  
• The ICV certificate shall be valid for a period of 14 months from the date of issuance of audited financial statements.
  
  
• ICV Scores are calculated using a pre-defined methodology by assessing the economic value added within the country for the goods or services provided by the entity. 
• ICV score is an integral part of the bid evaluation of the participating entities and it will give added weightage to the suppliers and vendors in the award process.
• Entities who are indirectly connected with the tenders also benefit from the ICV certification program; as ICV-certified supplier “spend” that remains within the country or contributes to the country's economy, is considered for ICV calculation purposes.
• Companies that have successfully passed the ICV Audit and achieved a high ICV score are eligible to receive ICV Certification. The certification is valid for one year and can be renewed upon successful completion of another ICV Audit.

ICV Audit Procedure in UAE

The ICV Audit process in UAE is a formal review conducted by a certified ICV auditor to determine a company's compliance with the ICV Program requirements. The process involves determining the scope of the audit, collecting relevant data, reviewing the data, calculating the ICV score, preparing an audit report, and issuing ICV Certification.

Companies that successfully pass the ICV Audit and achieve a high ICV score are eligible to receive ICV Certification, which is valid for one year and can be renewed upon successful completion of another ICV Audit.

The ICV Program requires companies to maintain their compliance with the ICV requirements, and therefore, the ICV auditor may conduct follow-up audits and monitoring to ensure the company continues to meet the requirements.

Overall, ICV Audit and Certification are important for companies that are working with ADNOC and its subsidiaries, as well as other government entities in the UAE that have adopted the ICV Program, as it demonstrates their commitment to contributing to the local economy and may increase their chances of winning contracts or renewing existing contracts with these entities.

Approved ICV Auditors in UAE

Approved ICV Auditors in UAE are professionals who are certified by the Abu Dhabi National Oil Company (ADNOC) to conduct ICV Audits for companies operating in the UAE. These auditors are independent and objective, and they play a critical role in assessing a company's compliance with the ICV Program requirements.

ICV Auditors use a systematic and rigorous approach to evaluate a company's spending and contribution to the local economy. They collect and analyze data and documentation to calculate and improve the company's ICV score, which reflects the percentage of a company's total spending that has been retained in the UAE.

ICV certificate can only be obtained from an ICV approved auditor/audit firm.  BMS Auditing has the approved ICV auditors team that will take care of the ICV audit services in UAE and take the load off of you. 

Our ICV Auditors may conduct follow-up audits and monitoring to ensure the company continues to meet the ICV requirements. They also provide guidance and recommendations to companies on how they can improve their ICV score and increase their contribution to the local economy. We do offer all the best audit services in Dubai. , Kindly check it out