Internal Audit Consulting Firms in India
With the changing regulatory requirements and increased inherent risk in various business processes, the role of internal audit has significantly gained importance. Although internal audit does not directly play role in providing various business solutions or maximizing the profitability of the business, it plays an important role in identifying critical processes, the inherent risk involved, maximizing process efficiency, and regulatory compliance.
is committed to delivering professional excellence and has a very specialized team in the domain of internal audits. In relation to internal audits, CompaniesNext follows a “Risk-based and objects-oriented approach”
which requires more focus on the critical areas of business. The key focus areas of the CompaniesNext
team are an organization, people, working practices, communication and measurement, and of course most important being client’s growth and shareholder’s wealth maximization.
Internal Audit Objectives:-
Internal audit activity evaluates risk exposures relating to an organization’s governance, operations, and information systems in relation to effectiveness and efficiency of business operations, reliability, and integrity of financial and operational information, safeguarding of assets of the organization, and compliance with laws, regulations, and contracts.
Internal Audit helps the management in
- Understanding and assessment of risks
- Identification of areas for system improvement
- Ensuring optimum resource utilization
- Ensuring compliance – internal and external
- Reviewing and ensuring the adequacy of management
- Improving management information system
Benefits of Internal Audit:-
Internal Audit provides various benefits to business organizations. Some of them are as follows:-
- It ensures the adequacy, reliability, and accuracy of financial and operational data by reviewing from an independent angle;
- It helps in improving the Management Information System (MIS) of the organization;
- By proper verification of assets whether they exist or not, helps in safeguarding the assets of the organization;
- It ensures helps in developing an effective accounting system in the organization;
- It ensures compliances of various laws, rules, regulations, accounting procedures, policies, and applicable standards;
- It can be a valuable exercise for expansion, diversification of business, and launching of business products by the organization.
As per Section 138 of Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rules, 2014, the requirement of appointment of internal auditor is applicable on the following class of companies:
- Every Listed Company
- Unlisted Public Company having-
- Paid up share capital of Rs. Fifty Crore or more during preceding financial year; or
- Turnover of Two Hundred Crore or more during preceding financial year; or
- Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or
- Outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year
- Private Company having-
- Turnover of two hundred crore rupees or more during the preceding financial year; or
- Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year
Key attributes of our internal audit service are as provided below:
- An audit approach founded on risk analysis and management concerns, which is consistently applied worldwide
An independent view of control and operations from regular involvement with the business
Process Review -
We broadly review the systems and the various processes so that the strengths of ERP solutions can effectively be harnessed along the “value chain” to optimize operations with the adoption of best global practices.
Constant interaction -
The key to service delivery in this environment is strong central coordination which will be delivered by a team headed by our partner. Our approach provides for regular meetings coupled with timely, consistent, forthright, and constructive reporting of our findings and recommendations.
Throughout the audit process, we give feedback to clients enabling them to take early action and avoid surprises.
At the end of the audit, we present our recommendations to Management in the form of a Report.