Internal audit has been defined as "…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..."
In simpler words, internal audit is an activity through which the management can evaluate and analyse a particular process or function. The purpose of conducting an internal audit is to identify weaknesses in systems and processes compared to defined parameters and to rectify lapses if any.
The need for internal audit arises because of
- Increased size and complexity of businesses
- Enhanced compliance requirements
- Focus on risk management and internal controls to manage them
- Unconventional business models
- Intensive use of information technology
- Stringent norms mandated by regulators to protect investors
- An increasingly competitive environment
Over the years internal audit has gained critical importance and become an indispensable function. Various statutory requirements also mandate internal audit to be conducted compulsorily. In India, the Companies Act is the basic statute prescribing the role of internal auditor, requirements, and qualifications of an auditor.
We are a new-age financial accounting company, that upholds age-old values and principles of Chartered Accountancy. We offer a fairly-differentiated set of services, tailored to specific business goals and challenges.