Internal Audit

Home Internal Audit

Internal Audit is not a cost, it’s a profit tool

Identifying hidden leakages, strengthening controls, and improving operational profitability.

Evolve of Internal Audit (Risk Advisory)

Traditional Audit

  • Focus: Check Box Compliance
  • Goal: Finding errors
  • Result: A static compliance report

Value Added Risk Advisory

  • Focus: Strategic inputs and process optimization
  • Goal: Finding root causes and cost saving opportunities
  • Result: Actionable debottlenecking loss control, and demonstrable ROI

Framework

framework

Engagement Model

Engagement

Core Advisory Services

Internal Audit

(Deep Dives into expenses, vendors and ledgers)

Process Audit

(SOP evaluation and efficiency optimization)

Compliance Audit

(Rigorous checks on GST, TDS and Other Statutory Regulations)

Stock Audit

Precise physical and systematic inventory control

IFC

Internal Financial Controls preparation and testing

Risk Advisory

Strategic identification and mitigation

Illustrative Core Audit Areas (1/2)

Procure to Pay (P2P)

  • Vendor selection, approval and credit controls
  • Purchase order vs actual purchase validation
  • Rate comparison & cost optimization
  • Duplicate / excess payments check
  • GRN vs Invoice vs Payment matching

Order to Cash (O2C)

  • Customer onboarding & credit control
  • Billing accuracy & revenue leakage check
  • Timely invoicing & collection efficiency
  • Outstanding receivables ageing analysis
  • Discount / credit note control

Inventory Audit

  • Physical stock vs book stock reconciliation
  • Slow-moving / obsolete stock identification
  • Inventory valuation accuracy
  • Stock ageing & turnover analysis
  • Internal control over inventory movement

Marketing Audit

  • ROI on marketing spend
  • Vendor / agency performance review
  • Budget vs actual analysis
  • Lead conversion efficiency
  • Unnecessary expense identification

Utility Management

  • Electricity / water / fuel cost analysis
  • Abnormal consumption identification
  • Cost-saving opportunities
  • Billing verification & tariff optimization
  • Usage trend analysis

Production Overview

  • Production efficiency & capacity utilization
  • Input-output ratio analysis
  • Wastage & scrap control
  • Standard vs actual performance

Illustrative Core Audit Areas (2/2)

Statutory Compliance Audit

  • GST, TDS, Income Tax
  • compliance review
  • Timely filing & payment verification
  • Input tax credit validation
  • Penalty / risk exposure identification
  • Compliance tracking system review

Investment Audit

  • Verification of investments & records
  • ROI analysis & performance tracking
  • Compliance with company policies
  • Risk assessment of investments
  • Documentation & approval review

Admin Review

  • General expense control
  • Vendor & contract management
  • Approval hierarchy effectiveness
  • Cost-saving opportunities
  • Process efficiency improvement

Fixed Asset Management

  • Fixed asset register verification
  • Physical verification of assets
  • Depreciation accuracy check
  • Asset tagging & tracking system
  • Disposal / write-off controls

Human Resource Audit

  • Payroll accuracy & compliance
  • Attendance & leave management system
  • Employee cost analysis
  • HR policy & SOP review
  • Statutory compliance (PF, ESIC etc.)

Lab Operation Review

  • Sample handling & reporting accuracy
  • Turn around time analysis
  • Process efficiency review
  • Equipment utilization & maintenance
  • Quality control procedures
 
     
   
 
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