Internal audit

Internal auditors,appointed by the management, is an independent function which helps in understanding and assessing risks and evaluates the internal controls.

internal-audit

Internal audit helps an organization accomplish its objectives by bringing a systematic, disciplined approached to evaluate and improve the effectiveness of risk management, control and governess processes (The institute of Internal Auditors 1999).

Distinct from statutory audits, internal audits are conducted at the behalf of management in the company in order

  • To evaluate the effectiveness of running processes,
  • To mitigate the risk present in each critical process of the organization,
  • To check the organization’s operational efficiency.

Internal auditors, although appointed by the management, is an independent function of management which helps in understanding and assessing risks and evaluates the internal controls and checks. It helps in ensuring optimum utilization of the resources of the entity, ensuring adequacy of system security & controls, as well as timely identification of liabilities including the ones in contingent nature.

Internal audit was not mandatory as per Companies Act, 1956. There was requirement in CARO (Companies Auditors Report Order) to comment on effectiveness if Internal audit in certain companies.

However, section 138 of Companies Act 2013 (read with rule 13 of The Companies (Accounts) Rules, 2014 has made mandatory to appoint internal auditors for certain class of companies basis listing status, turnover, paid up share capital, outstanding loans & borrowing criteria.

Why do you need Internal Audit?

Companies at different stages of their life cycles need different internal audit services and the need of an established company would be different from the needs of a new and emerging company:

Given below are reasons why companies should have an internal audit function:

  • The management focuses on business building, with confidence that their business processes and systems are functioning properly
  • Confidence in financial processes, management information systems and business intelligence information
  • Reduce wastages, frauds and inefficiencies
  • Introduce best practice accounting and human resources systems and processes
  • Provide bandwidth to the management to get into the next league
  • Identify opportunities for cost reduction and cost containment
  • Proactive assessment of business risks and risk mitigation processes

How can we assist you?

Our internal audit service ensures compliance with statutory regulations, company policies, procedures and standards by evaluating evidence, records, statements of fact, or other information relevant to the audit.

The following are specific internal audit services conducted by KGA:

  • Procurement audit
  • Cash & bank audits
  • AR audit
  • Fixed assets audit
  • Sales audit
  • Stores/Outlets audit
  • HR audit
  • Stautory compliances audit
  • inventory audit
  • Mystery audit
  • Payroll audit
  • Direct/Indirect cost audit
  • AP audit
  • Sales order processing audit
  • Dealer/Distributor audit

We can engage with the organization either for any specific audit area or there can be general engagement whereby audit scope & areas are regularly defined & discussed with management.

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