Audit & Assurance Services

Internal Audit Definition

“Internal audit provides independent assurance on the effectiveness of the internal controls and risk management processes to enhance governance and achieve organisational objectives.”

Internal Audit is an independent function established within an organisation to examine and evaluate its activities as a service to the organisation. It serves the organisation to accomplish objectives by bringing a systematic, disciplined and consistent approach to assess and strengthen the effectiveness of risk management, control and governance processes.

Internal Audit applicability differs from organisation to organisation. Still, it is advisable to get it carried out even if it is not mandatorily applicable to you to detect and minimise the chances of fraud & errors and review the effectiveness & efficiency of internal control operations of the organisation so that the required corrective actions, if any, can be taken well in time.

Scope and Objectives of Internal Audit

The scope and objectives of internal Audit are dependent upon the size and the structure of the entity and its management’s requirements. The internal Audit operates typically in one or more of the following areas:

• Review of the accounting system and related internal controls.
• Examination of the management of financial and operating information.
• Examination of the effectiveness and efficiency of operations, including the financial controls of an organisation.
• Physical examination and verification.

Key Objectives:

1. Verification: Accuracy, reliability, and authenticity of the financial, accounting, and statistical records.
2. Compliance: Ascertaining that accepted accounting policies, principles, and practices have been developed while preparing the financial accounts.
3. Asset Protection: Ensuring assets are purchased/disposed of under proper authorisation and access is restricted to authorised persons.
4. Liability Check: Ascertaining that liabilities are incurred for the authorised activities of the organisation.
5. System Soundness: Ensuring the internal checks system is sound and economical.
6. Prevention: Detecting and preventing fraud and errors.
7. Reporting: Reviewing the internal control system and communicating weaknesses to authorities on a timely basis.

Internal Audit Framework

The operation of the internal audit function must comply with the following code:

• Formal Charter
• Documentation of Reporting Structure
• Detailed Testing
• Competency
• Liaising with external auditors
• Audit committee and the external auditors
• Reviewing

Effectiveness of Internal Audit

External Auditors should consider the following factors when relying on the work of an Internal Auditor:

• The adequacy of audit programmes regarding the scope of the audit report.
• The planning of the work, supervision, evaluation, and review of the documentation of the assistants.
• The availability of sufficient appropriate audit evidence.
• The appropriateness of the conclusion attained and the audit report thereon.
• Any expectations or suspicious matters disclosed by the Internal Audit.

Internal Audit Services: AJAY D KUMAR & ASSOCIATES

Ajay D Kumar & Associates is known for its internal audit services in Delhi. Reasons to choose AJAY D KUMAR & ASSOCIATES:

• Risk-Based Approach: Proficient auditors focus on client objectives and constraints.
• Global Standards: Services are aligned with consistent executive ordinances in audit practices worldwide.
• Specialised Expertise: Experience in fraud investigations, project monitoring, system implementation, and revenue assurance.
• Industry Breadth: Serving clients in Manufacturing, Telecom, Education, Textile, and Consumer Business.
• Practical Solutions: A disciplined approach that provides realistic solutions beyond just reports.
• Value Creation: Focused on vision and foresight throughout the entire enterprise.