Information

Internal audit is an independent management function which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity, including the entity's strategic risk management and internal control system by assessing the data and business processes. It can be conducted by someone in the organization or external third parties. Internal audit can be done by CA, Cost accountant or any other professional. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice.CoKaCo will assist you to connect with the reliable Chartered Accountants for your auditing needs such as Internal Auditors, etc.

Features of Internal Audit :-

  1. Focus on risk management
  2. Providing assurance regarding Internal Controls
  3. Improving efficiency in operations
  4. Fraud Detection & Prevention of errors
  5. Increasing financial reliability and integrity

Applicability of Internal Audit :-

Internal audit is mandatory to certain types of the company as follows:

  • Every listed company;
  • Unlisted public limited companies :-
    • whose paid up shares capital is INR 50 Crore or more during the preceding financial year; or
    • whose turnover are of INR 200 Crore; or
    • Whose outstanding loans and borrowing from banks or public financial institution are more than INR 100 Crore or more; or
    • whose outstanding deposits of 25 crore rupees or more at any point of time during the preceding financial year; and
  • Every private limited company having :-
    • Turnover of INR 200 Crore or more; or
    • Outstanding loans or borrowings from banks or public financial institutions exceeding 100 Crore.

FAQ :-

Why an audit is to be conducted?

An audit is very beneficial to assess operations within your area and identify areas for improvement or change. This assistance may be especially helpful if you have recently assumed a new or additional supervisory role, have implemented (or are planning to implement) a new process or IT system, or a key employee has left.

What are Internal Controls?

Internal controls encompass a unit’s entire set of methods and procedures that are used in the day-to-day activities of the unit. These methods and procedures safeguard the unit’s assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed policies.

How long does an audit take?

Audits may last several days or several months and will vary in length depending on an area’s size, complexity, and the specific audit objectives. Not all the time devoted to the audit will be evident to you because of the amount of preparation, analysis, and related work needed to document the effort. The availability of audit documentation and the responsiveness of your department to audit requests and questions also affect the time required to complete an audit.

What types of audits are conducted?

There are many different types of audits. An audit may be of one or more of the following types:

  • Financial

    These audits are examinations of financial transactions and systems/procedures used to process them. These types of audits may also include assessment of balances or amounts on financial statements or reports.

  • Compliance

    Compliance audits determine the degree to which the University or a University unit adheres to laws, regulations, policies, procedures, or contract agreements.

  • Operational / Performance

    Operational audits are designed to test the efficiency and economy of operations. Performance audits are designed to audit progress towards goals or objectives established by University management.

  • Investigative

    Internal Audit undertakes investigative audits when circumstances or evidence suggest a fiscal irregularity involving University resources.

  • Follow-up Audits

    This work determines whether management has taken appropriate, effective and timely action to address previously reported issues.

Who can conduct the Internal audit?

Internal audit can be conducted by Independent qualified Chartered Accountants, Company Secretaries, or Cost and Works Accountants, who are in practice and who do not have any conflict of interest with the member.

What’s the difference between Audit (internal) and our external auditors?

External auditors perform annual audits for the purpose of expressing an opinion as to whether the financial statements of an organisation is fairly present their financial position and performance and whether the financial statements conform to Generally Accepted Accounting Principles (GAAP). Internal Audit is a part of the organization it audits, but remains independent of operations and management. Internal Audit’s focus is to determine whether the organization’s procedures and internal controls are sufficient for the achievement of management’s business objectives. Internal auditors perform different kinds of audits, not just financial, and may also perform special projects, investigations or management requests.

Information

Internal audit is an independent management function which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity, including the entity's strategic risk management and internal control system by assessing the data and business processes. It can be conducted by someone in the organization or external third parties. Internal audit can be done by CA, Cost accountant or any other professional. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice.CoKaCo will assist you to connect with the reliable Chartered Accountants for your auditing needs such as Internal Auditors, etc.

  1. Focus on risk management
  2. Providing assurance regarding Internal Controls
  3. Improving efficiency in operations
  4. Fraud Detection & Prevention of errors
  5. Increasing financial reliability and integrity

Internal audit is mandatory to certain types of the company as follows:

  • Every listed company;
  • Unlisted public limited companies :-
    • whose paid up shares capital is INR 50 Crore or more during the preceding financial year; or
    • whose turnover are of INR 200 Crore; or
    • Whose outstanding loans and borrowing from banks or public financial institution are more than INR 100 Crore or more; or
    • whose outstanding deposits of 25 crore rupees or more at any point of time during the preceding financial year; and
  • Every private limited company having :-
    • Turnover of INR 200 Crore or more; or
    • Outstanding loans or borrowings from banks or public financial institutions exceeding 100 Crore.
Why an audit is to be conducted?

An audit is very beneficial to assess operations within your area and identify areas for improvement or change. This assistance may be especially helpful if you have recently assumed a new or additional supervisory role, have implemented (or are planning to implement) a new process or IT system, or a key employee has left.

What are Internal Controls?

Internal controls encompass a unit’s entire set of methods and procedures that are used in the day-to-day activities of the unit. These methods and procedures safeguard the unit’s assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed policies.

How long does an audit take?

Audits may last several days or several months and will vary in length depending on an area’s size, complexity, and the specific audit objectives. Not all the time devoted to the audit will be evident to you because of the amount of preparation, analysis, and related work needed to document the effort. The availability of audit documentation and the responsiveness of your department to audit requests and questions also affect the time required to complete an audit.

What types of audits are conducted?

There are many different types of audits. An audit may be of one or more of the following types:

  • Financial

    These audits are examinations of financial transactions and systems/procedures used to process them. These types of audits may also include assessment of balances or amounts on financial statements or reports.

  • Compliance

    Compliance audits determine the degree to which the University or a University unit adheres to laws, regulations, policies, procedures, or contract agreements.

  • Operational / Performance

    Operational audits are designed to test the efficiency and economy of operations. Performance audits are designed to audit progress towards goals or objectives established by University management.

  • Investigative

    Internal Audit undertakes investigative audits when circumstances or evidence suggest a fiscal irregularity involving University resources.

  • Follow-up Audits

    This work determines whether management has taken appropriate, effective and timely action to address previously reported issues.

Who can conduct the Internal audit?

Internal audit can be conducted by Independent qualified Chartered Accountants, Company Secretaries, or Cost and Works Accountants, who are in practice and who do not have any conflict of interest with the member.

What’s the difference between Audit (internal) and our external auditors?

External auditors perform annual audits for the purpose of expressing an opinion as to whether the financial statements of an organisation is fairly present their financial position and performance and whether the financial statements conform to Generally Accepted Accounting Principles (GAAP). Internal Audit is a part of the organization it audits, but remains independent of operations and management. Internal Audit’s focus is to determine whether the organization’s procedures and internal controls are sufficient for the achievement of management’s business objectives. Internal auditors perform different kinds of audits, not just financial, and may also perform special projects, investigations or management requests.