What Is an Internal Audit?

Firstly, an internal audit is an independent review of your company’s financial and operational processes. Then, it assesses risk management, control effectiveness, and regulatory compliance. Moreover, internal audits identify gaps and recommend improvements. Consequently, your organization gains transparency and robust governance.

Who Needs Internal Audits?

Therefore, you should consider internal audits if you are:

• Companies subject to Section 138 of the Companies Act requiring statutory internal audit.
• Large enterprises seeking to strengthen internal controls and mitigate fraud.
• SMEs aiming to improve efficiency and risk management.
• NGOs and trusts needing to demonstrate accountability to donors.
• Businesses preparing for external audit or regulatory inspection.

Moreover, regular audits build stakeholder confidence and support strategic growth.

Our Internal Audit Procedure

1. Planning & Risk Assessment:
   Firstly, we meet your management to understand business objectives and risks. Then, we develop an audit plan covering high-risk areas.
2. Fieldwork & Testing:
   Next, we collect data, review documents, and test controls—such as segregation of duties and reconciliation procedures. Moreover, we perform substantive testing of transactions.
3. Issue Identification:
   Afterwards, we analyze findings and categorize them by severity. Consequently, you gain clarity on control gaps and operational weaknesses.
4. Reporting & Recommendations:
   Then, we draft a comprehensive audit report with actionable recommendations. Furthermore, we present it to your board or audit committee.
5. Follow-Up & Monitoring:
   Finally, we track implementation of corrective actions and provide periodic updates. Thus, you continuously strengthen your control environment.

Timeline & Documents Required

Estimated Timeline

• Audit planning: 1 week.
• Fieldwork & testing: 2–3 weeks.
• Report drafting: 1 week.
• Follow-up reviews: periodic as agreed.

Documents Required

• Organizational chart and policies.
• Financial statements and ledgers.
• Bank reconciliations and cash books.
• Contracts, invoices, and purchase orders.
• Previous internal/external audit reports.
• Risk registers and compliance manuals.

Consequences of Non-Compliance

• Therefore, weak internal controls increase fraud and misstatement risks.
• Moreover, regulatory bodies may impose penalties for non-compliance under Companies Act or FEMA.
• In addition, failure to identify control gaps can lead to business disruptions and financial losses.
• Consequently, your reputation and investor confidence may suffer significantly.

Why Choose Our Audit Services

• Furthermore, our Dombivali-based CAs bring deep industry and regulatory expertise.
• Moreover, we use risk-based audit methodologies aligned with global best practices.
• Consequently, you receive clear insights and practical improvement plans.
• In addition, we offer flexible engagement models—ongoing or cyclic—tailored to your needs.

Client Testimonial

[testimonials view_id=”1″ category=”Delhi” category=”Internal Audit”]

Internal Audit FAQs

How often should internal audits be conducted?

Therefore, companies subject to Section 138 require quarterly audits, while others may choose semi-annual or annual cycles.

Can internal audits be outsourced?

Moreover, outsourcing to a CA firm ensures independence and access to specialist expertise.

Do internal audits replace external audits?

In addition, internal audits complement but do not replace statutory external audits required by law.

Who is the Internal Audits Services in Delhi?

Consequently, choose a CA with proven audit track record, deep local insights, and a client-centric approach for optimal compliance.

Contact Us

Ready to strengthen your controls with robust internal audits? Book your Appointment Now.