Internal audit is an independent review of an organisation's processes, controls and risk management, usually reporting to management or the audit committee. It is distinct from the statutory audit of the financial statements. The firm undertakes risk-based internal audits, reviews of internal financial controls (IFC), SOP reviews and process audits.
Under section 138 of the Companies Act, 2013, certain classes of companies must appoint an internal auditor. Other organisations use internal audit as a management tool. The scope is agreed for each assignment and may cover selected processes, locations or a rolling plan across the year.
Internal audit work is carried out from the head office in Thiruvananthapuram and from offices in Kochi (Ernakulam), Kozhikode, Kannur, Alappuzha, Perinthalmanna, Nagercoil, Thoothukudi, Delhi and Dubai.
Risk-based internal audit
A risk-based internal audit starts with an agreed view of the organisation’s principal risks. Fieldwork is then directed to those processes and controls where a weakness would matter most, with findings reported to management or the audit committee.
Internal financial controls
A review of internal financial controls (IFC) looks at whether the policies and procedures over financial reporting are designed and operating as intended. This work can sit within a wider internal audit plan or be taken up as a focused assignment.
SOP review and process audit
SOP review and process audit examine a defined process — for example procurement, inventory, payroll or revenue — against documented procedures, authorisation limits and the evidence that the process is being followed.
What is included.
- Risk-based internal audit planning and fieldwork
- Internal financial controls (IFC) review and testing
- SOP review and process audit
- Reporting to management and the audit committee
- Follow-up of previously agreed actions
- Support on control and governance readiness for companies considering a listing
How we work.
Scope and steps are agreed for each assignment.
- 01Scope
Agree objectives, risk areas, locations and the reporting line with management or the audit committee.
- 02Plan
A risk-based internal audit plan sets priority processes, controls to be tested and the timetable.
- 03Execute
Fieldwork on the agreed processes, including tests of internal financial controls, SOP review and process audit.
- 04Report
Findings, risk ratings and agreed actions, with follow-up in later cycles.
Common questions.
What is internal audit?
Internal audit is an independent, ongoing review of an organisation’s processes, controls and risk management, typically reporting to management or the audit committee. It is distinct from the statutory audit, which gives an opinion on the financial statements.
Which companies must have an internal audit under the Companies Act, 2013?
Section 138 of the Companies Act, 2013, read with the Companies (Accounts) Rules, requires internal audit for certain classes of companies, including listed companies and unlisted public and private companies that meet prescribed thresholds of paid-up capital, turnover or outstanding borrowings.
What is a risk-based internal audit?
A risk-based internal audit focuses fieldwork on the areas of highest risk to the organisation, rather than testing every process equally. The audit plan is informed by a risk assessment agreed with management or the audit committee.
What are internal financial controls (IFC)?
Internal financial controls are the policies and procedures that help ensure orderly conduct of business, safeguarding of assets, prevention and detection of fraud and error, accuracy of accounting records and timely preparation of reliable financial information. Reporting on internal financial controls over financial reporting applies to certain companies under the Companies Act, 2013.
How does internal audit differ from a process or SOP review?
A process or SOP review examines whether documented procedures exist and are followed for a particular process. Internal audit is typically broader: it may include SOP review and process audit, but also tests of controls, compliance and risk management across an agreed plan, with reporting to those charged with governance.
General information only - not advice on your specific facts.
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