Internal Audit is an ideal tool to lessen gaps and loopholes between the varied business processes and execution strategies of an entity in different commonplace office functions such as HR, Finance, Risk and Statutory compliances. Internal Audit is nothing but the cautious assessment of internal controls. It lends a hand in implementing the better industrial norms and standards to meet business objectives.

As stated by the standard laid down by The Institute of Chartered Accountants of India (ICAI), Internal Audit is largely defined as a Risk Management Function autonomously carried out to support the Management of an entity. It is performed internally at the request of the Management and poles apart from External or Statutory Audit.

Features

• Internal audit is an independent management task performed to provide an impartial and fair report.
• The internal audit checks the on hand standard operating procedures and internal controls and with the objective of determining whether they are accurately carried out.
• It promotes better business control by improving internal control structures.
• It categorizes risks & prospects and plans controls to manage the threat and to take the benefit of opportunities.

When is Internal Audit required?

• If business’s complexity and size is increased
• Conformity of Statutory requirement
• Information technology’s use on large scale
• Internal controls for risk management
• Set up ideal business management by using the best industry practices.

Functions

• Evaluate policies, processes and operations
• Assessing and examining constant efficacy of the internal control system and suggesting for better internal control mechanism.
• Help management to identify and prevent frauds
• Support management in creating improved processes & policies
• Confirm peril being managed within satisfactory limits as laid down by the Board of Directors.

As per Securities and Exchange Board of India (SEBI), listing agreement requires listed entity to ensure:

• Find & report suspected frauds or say irregularity that is the result of internal control mechanism’s failure
• Steps taken by them to look up dearth in internal control to the auditors and the audit committee
• Certification and taking responsibility by the CEO and CFO to the Board of Directors for the usefulness of internal controls
• Internal audit function is being made functional
• Report the internal controls’ weaknesses

At Parikh & Associates, we offer a design to suit individual entity's needs and address their Concerns. Our endeavor is to handhold you right from addressing your key business concerns, helping you comply with regulatory norms and enhancing overall effectiveness of corporate governance and reporting requirements, boosting your operational efficiencies to achieve your strategic business goals.

While we tailor our solution to a client’s requirements, the agility, conviction and sensitivity with which we approach any issue is constant. We move toward the every audit with a high standard of professionalism and integrity, while also working with our clients to improve their internal controls and governance.