Internal Audit Services

What is Internal Audit?

Internal Audit acts as a health check for your organization. It evaluates your company’s internal controls, governance, and accounting processes to ensure everything is functioning effectively. The goal is to identify risks, improve controls, and strengthen compliance, helping your business achieve its objectives with confidence.

Why is Internal Audit Important?

Internal Audit is not just about compliance—it’s about building a stronger, risk-free organization. It ensures:

• Adherence to laws and regulations.
• Detection of gaps and weaknesses in internal systems.
• Improved operational efficiency and risk management.
• Better decision-making through accurate insights.

As per the Companies Act, 2013, certain companies are required to appoint an internal auditor. This can be a Chartered Accountant, Cost Accountant, or another qualified professional.

Who Needs Internal Audit?

According to Rule 13 of the Companies (Accounts) Rules, 2014, Internal Audit is mandatory for:

• All listed companies.
• Unlisted public companies with:
  • Turnover of ₹200 crore or more.
  • Paid-up share capital of ₹50 crore or more.
  • Outstanding deposits of ₹25 crore or more.
  • Loans of ₹100 crore or more.
• Private companies with:
  • Turnover of ₹200 crore or more.
  • Loans of ₹100 crore or more.

Our Internal Audit Process

1. Planning & Scoping – Identify key risk areas and define audit scope.
2. Information Gathering – Review documents, processes, and controls.
3. Analysis & Evaluation – Assess compliance and identify gaps.
4. Reporting – Provide detailed findings with actionable recommendations.

Objectives of Internal Audit

• Revenue Audit – Detect income leakages.
• Compliance Audit – Ensure adherence to tax and regulatory norms.
• Payroll & Reimbursement Audit – Validate employee-related expenses.
• Procurement & Systems Audit – Strengthen internal controls.

Penalties for Non-Compliance

Under Section 450 of the Companies Act, 2013, failure to comply with internal audit requirements can lead to:

• Company penalty: ₹2,00,000.
• Officer penalty: ₹50,000.
• Additional daily penalties for continued non-compliance.