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Internal Audit

Start your Private Limited Company (Pvt Ltd) Registration process online at the Reasonable Price.

₹ 9663 /-

excl of GST  

What is Internal Audit?

Internal auditing is the methodical and independent evaluation of an organization's financial, operational, and managerial procedures. It assesses internal control effectiveness, risk management, and policy and regulatory compliance.

The Institute of Chartered Accountants of India (ICAI) offers guidelines on internal auditing through its many statements, including the Standards on Internal Audit. These principles provide a framework for conducting internal audits that prioritize impartiality, honesty, and confidentiality.

The internal auditing process assists firms in increasing efficiency, identifying areas for improvement, and reducing risks. While no explicit legislation governs internal auditing, the corporations Act of 2013 in India requires certain corporations to have an internal audit unit to ensure appropriate financial reporting and corporate governance.

Benefits of Internal Audit

Internal audits provide several benefits to firms, including increased operational excellence and strategic decision-making. They improve financial integrity by guaranteeing proper financial reporting and regulatory compliance.

Internal audits help to save money and enhance operations by identifying inefficiencies and recommending process improvements.
Audits identify potential vulnerabilities and make recommendations for better risk management, making risk mitigation a significant advantage. Internal audits protect company assets and reputation by implementing fraud detection and prevention methods.

Internal audit insights enable management to make more informed decisions, improve corporate governance, and adapt to changing business conditions, resulting in long-term growth and success.

Who is Applicable for Tax Audit?

Large Corporations:
• Publicly traded companies.
• Large private corporations.
Financial Institutions:
• Banks.
• Insurance companies.
Government Organizations:
• Publicly traded companies.
• Large private corporations.
Nonprofit Organizations:
Large nonprofit organizations.
Healthcare Institutions:
• Hospitals.
• Healthcare providers.
Manufacturing companies:
Companies involved in sophisticated manufacturing processes.
Retail Chains:
Large retail companies.
Multinational Corporations:
Companies with a global presence.
High-risk industries:
• Industries that are subject to regulatory monitoring.
• Industries with high compliance standards.
Entities with Complex Structure:
• Companies with a variety of business segments.
• Entities with complicated organizational structure

Documents Required for an Internal Audit

Audit Plan
Risk Assessment Documentation
Internal Controls Documentation
Previous audit reports
Financial and compliance documents
Including contracts and agreements
Employee records
Inventory Assets
IT System Documentation
Quality Management Documents
Customer Records.
Supplier Records
Project documentation
Environmental and safety documents
Meeting minutes
Insurance policies
Communication Records
External Audit Reports
Customer Satisfaction Survey
Nonconformance and Corrective Action Records

Filings, Compliance and Closure for Internal audit

Filings for Internal Audit

1. Document Identification:
  • Each audit file or document should be assigned a unique identification to facilitate tracking and retrieval.
2. File Organization:
  • >Set up a standard file system, either electronic or physical, to categorize and arrange audit documents.
3. Version Control:
  • >Use version control to track audit document changes and updates.
4. Naming Conventions:
  • >To make it easier to identify files and folders, create a consistent naming convention.
5. Storage Security:
  • >Ensure that audit files are securely kept to protect confidentiality and prevent unauthorized access.

Compliance for Internal Audit

1. Examine Relevant Standards and legislation:

Familiarize yourself with internal auditing standards, industry legislation, and corporate policies.

2. Checklist Development:

Create a compliance checklist based on relevant standards and laws to verify that all required elements are addressed.

3. Regular Updates:

Review and update the compliance checklist on a regular basis to reflect any changes in regulations or standards.

4. Document Verification:

Ensure that all audit paperwork follows the prescribed standards and rules.

5. Peer Review

Conduct a peer review to ensure the audit work is of high quality and compliant.

Closure for Internal Audit

1. Completion of Audit Work:

Ensure that all audit procedures, testing, and documentation are carried out in accordance with the audit plan.

2. Drafting an Audit Report:

Create a detailed audit report that contains findings, suggestions, and management replies.

3. Management Responses:

Obtain and document management's responses on the audit findings and suggestions.

4. Final Review:

Ensure the correctness and completeness of all audit documents, including the report.

5. Approval and Sign-off:

Gather approval and sign-off from key stakeholders, such as the audit committee or management, in accordance with organizational policies.

6. Distribution of Audit Report:

Distribute the final audit report to important stakeholders, taking care to protect sensitive information.

7. Archiving:

Keep the audit file, including all supporting documents, secure and easily accessible for future reference or audits.

Why Choose SHR for your Internal Audit?

Collaborative Approach:
Our internal audit team collaborates closely with your internal stakeholders during the audit process. We see ourselves as an extension of your team, committed to your organization's success
Cost-Effective Assurance:
We prioritize cost-effectiveness. SHR provides cost-effective internal audit services that provide assurance and value while remaining within your budget.
Confidentiality Assurance:
Your company information is maintained with strict confidentiality. SHR maintains strict secrecy throughout the internal auditing process to ensure the security of your sensitive information.
Document Security Assurance:
At SHR safeguarding your documents is our top priority. We secure your vital data with robust encryption and secure storage. Trust us to keep your important documents safe and confidential.
Prioritizing your financial well-being:
SHR prioritizes your financial well-being. Benefit from our cost-effective services that not only fulfill your demands but also save you money. We promote affordability and value in all of our services, so you may experience excellence without breaking the bank.

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