Internal Audit Service is a vital function that provides independent assurance on the effectiveness of the internal controls and risk management processes of an organization to enhance governance and achieve organizational objectives. At Ahuja & Ahuja Chartered Accountants, we aim to be among the Top Internal Audit Firms in Delhi and NCR Region of Gurgaon and Noida. Our expert and experienced team of Chartered Accountants bring a systematic, disciplined, and consistent approach to assess and strengthen the effectiveness of risk management, control and governance processes.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Today Internal Audit is not just an audit of Financial working of an organisation. It has evolved to become a tool in the hands of management to ensure proper working of any function of the organisation be it production or sales or finance or human resources.
Over the time the role of Internal Auditor has widened from just ensuring the correctness of financial system of any organisation to include consultative processes like advising on better utilisation of organisations resources, better management of financial as well as non-financial functions etc.
Scope and Objectives of Internal Audit
The scope and objectives of Internal Audit are dependent upon the size and the structure of the entity and its management’s requirements. Our team operates typically in one or more of the following areas:
- Review of the accounting system and related internal controls.
- Examination of the management of financial and operating information.
- Examination of the effectiveness and efficiency of operations including the financial controls of an organization.
- Physical examination and verification.
The objectives of Internal Audit that we aim to achieve for our clients are:
- Verification of the accuracy, reliability, and authenticity of the financial, accounting, and statistical records.
- Ascertaining that accepted accounting policies, principles, and practices have been developed while preparing the financial accounts.
- Ensuring that the assets are purchased/disposed of under proper authorization and that access to the assets is restricted to authorized persons at permitted times.
- Ascertaining that the liabilities are incurred for the authorized activities of the organization.
- Ensuring that the internal checks system operating in the organization is sound and economical.
- Preventing and detecting fraud and errors.
- Reviewing the overall operations of the internal control system and if deviations or weakness are noted, communicating the same to the appropriate authorities on a timely basis.
Benefits of Internal Audit
Our Internal Audit services offer numerous benefits to organizations, including:
- Enhanced governance and achievement of organizational objectives.
- Detection and minimization of the chances of fraud & errors.
- Review of the effectiveness & efficiency of internal control operations of the organization so that the required corrective actions, if any, can be taken well in time.
- Compliance with the applicable laws, regulations, and internal policies.
- Improved risk management processes.
- Identification of opportunities for operational improvement and cost savings.
Internal Audit Framework
We follow a comprehensive internal audit framework that ensures our audit services comply with industry best practices and meet the highest standards. Our framework includes:
- Formal Charter: We establish a formal charter that outlines the scope, objectives, responsibilities, and authority of our internal audit function.
- Documentation of Reporting Structure: We document our reporting structure to ensure our internal audit function is independent and objective.
- Detailed Testing: We conduct detailed testing of key business processes, controls, and procedures to identify weaknesses and areas for improvement.
- Competency: We ensure our internal auditors have the necessary skills, knowledge, and experience to perform their duties effectively.
- Liaison with External Auditors: We liaise with external auditors to ensure coordination and avoid duplication of efforts.
- Audit Committee and the External Auditors: We work closely with the audit committee and external auditors to ensure our internal audit services align with their objectives and requirements.
- Reviewing Effectiveness of Internal Audit: We review the effectiveness of our internal audit function to ensure it adds value to our clients’ organizations.
Why Choose Ahuja & Ahuja for Internal Audit Services?
At Ahuja & Ahuja, we understand the challenges our clients face in managing risk and achieving their objectives. We offer internal audit services that are tailored to meet their specific needs and requirements. Here are some reasons why you should choose us:
- Risk-based Approach: Our proficient auditors adopt a risk-based approach that focuses on the objectives and constraints of our clients to accomplish those objectives.
- Consistent Executive Ordinances: Our services have been improved for consistent executive ordinances in all internal audit practices all over the world.
- Specialized Expertise: We offer expertise in implementing the audit work in specialized areas such as fraud investigations, monitoring of projects, implementation of systems, and revenue assurance.
- Industry Experience: Our experts’ team serves clients in various industries like Manufacturing, Telecom industries, Education, Textile, and Consumer Business.
- Practical and Realistic Solutions: Our services can aid both the sides – you and your counsel with a comprehensive and disciplined approach that gives practical and realistic solutions, not just reliable reports.
- Value Creation: Our specialists and services are centered on value creation and offer you the vision and foresight throughout the enterprise as a whole.
Who Needs to Appoint an Internal Auditor?
While it is compulsory for listed companies to appoint an internal auditor, there are specific criteria for unlisted public and private companies to determine if they are required to appoint an internal auditor. Our team of experts can assist you in determining if your company meets these criteria and guide you in complying with the regulations.
Who Can Act as an Internal Auditor?
An internal auditor should be independent, objective, and possess the necessary skills and knowledge to perform the internal audit function. The internal auditor can be a cost accountant, chartered accountant (practising or non-practising), or any other professional as decided by the Board of Directors. Our team of experts has the necessary qualifications and experience to perform the internal audit function efficiently and effectively.
Who Has to Appoint the Internal Auditor?
The Board of Directors of the company is responsible for appointing the internal auditor. Our team of experts can assist you in complying with the necessary regulations, including filing Form MGT-14 with the Registrar, if required.
What are Internal Controls?
Internal controls are the policies, procedures, and processes implemented by a company to ensure the integrity of financial and accounting information, promote accountability, safeguard assets, prevent fraud, and ensure compliance with applicable laws and regulations. Our Internal Audit service can help identify weaknesses in your internal controls and recommend measures to mitigate risks.
Can internal auditors perform financial statement audits?
Internal auditors can perform certain procedures related to financial statement audits, but they cannot issue an opinion on the accuracy and completeness of the financial statements. This is the responsibility of the external auditor.
How does an internal audit differ from a compliance audit?
An internal audit focuses on evaluating the company’s internal controls, risk management, and governance processes. In contrast, a compliance audit focuses on assessing whether the company is complying with laws and regulations.
Can internal auditors provide consulting services?
Internal auditors can provide consulting services as long as it does not compromise their independence and objectivity in performing their audit function. It is important to maintain a clear distinction between audit and consulting services to avoid any potential conflicts of interest.
How are the findings of an internal audit reported?
The findings of an internal audit are typically reported to the Board of Directors, management, and other relevant stakeholders. The report may include recommendations for improving internal controls, mitigating risks, and ensuring compliance with laws and regulations.
What qualifications do internal auditors require?
Internal auditors require a degree in accounting, finance, or a related field, along with professional certifications such as Certified Internal Auditor (CIA) or Certified Public Accountant (CPA). They also need experience in internal audit or a related field to perform the function effectively.