Internal Audit
A deep-dive operational audit designed to plug revenue leaks, strengthen internal controls, and streamline processes. While statutory audits look at the past, our internal audits focus on improving your future profitability.
Key benefits
- Risk Mitigation: Identifies critical vulnerabilities in procurement, sales, payroll, and cash management.
- Cost Reduction: Plugs leakages like duplicate vendor payments, ghost employees, and inventory shrinkage.
- Process Optimization: Recommends Standard Operating Procedures (SOPs) to automate and secure operations.
- Board Assurance: Provides independent assurance to the Audit Committee and investors regarding corporate governance.
Documents required
- Access to ERP/Accounting software (SAP, Oracle, Tally, Zoho).
- Current process manuals and SOPs.
- Delegation of Authority (DOA) matrix.
- Departmental MIS reports.
How it works
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1
Risk Assessment
Mapping the business processes to identify high-risk areas (e.g., inventory, cash handling).
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2
Walkthroughs
Tracing transactions from origin to conclusion to see if internal controls are actually working.
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3
Testing
Detailed substantive testing of a sample of transactions.
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4
Actionable Reporting
Presenting the findings with severity ratings and practical recommendations for management.
Frequently asked questions
Is Internal Audit mandatory by law?
Under Section 138 of the Companies Act, it is mandatory for all listed companies, and for unlisted private companies if their turnover exceeds ₹200Cr or outstanding loans exceed ₹100Cr. However, many startups opt for it voluntarily to satisfy investors.
How is this different from Statutory Audit?
Statutory audit ensures the financial statements are fair for external stakeholders (government, public). Internal audit is a tool for management to improve operations and fix leaks.
Do you audit IT systems?
Yes. Our audit encompasses Information Systems (IS) controls, checking for data security, access rights, and disaster recovery protocols.