An Internal audit offers risk management and evaluates the effectiveness of the company’s internal controls, accounting processes, and governance. The role of Internal Audit is to provide management and governing bodies of an organization an objective source of information regarding the organization’s risks, control environment, operational effectiveness, and compliance with applicable laws and regulations.
APPLICABLE PROVISIONS FOR THE APPOINTMENT OF INTERNAL AUDITOR.
As per the provisions of Section 138(1) of the Companies Act 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014 which defines that:
The following class of businesses shall be required to involve an internal auditor which may be either an individual or a partnership firm or a body corporate, namely:-
- Every listed business;
- Every unlisted public business having-
- Paid-up share capital of fifty crore rupees or more in the previous financial year; or
- Turnover of two hundred crore rupees or more during the previous financial year; or
- Unsettled loans or borrowings from banks or public financial organizations beyond one hundred crore rupees or more at any point of time during the preceding accounting year; or
- Outstanding deposits of twenty-five crore rupees or more at any point of time during the previous financial year; and
- Every Private Company having-
- Turnover of two hundred crore rupees or more during the prior financial year; or
- Unsettled loans or borrowings from banks or public financial organizations beyond one hundred crore rupees or more at any point of time during the previous financial year
- An existing business covered under any of the above principles shall comply with the needs of section 138 and this rule within six months of the beginning of such a section.
Why is Internal Audit Important for business?
- Internal auditing Improve Efficiency of Operations
- Evaluate Risks and Protects Assets
- Provides Objective Insight
- Internal audit functions as Assesses Controls
- Ensure Compliance with Laws and Regulations
How ASC can help?
- Assistance in preparing a strategy on how to carry out an internal audit.
- Appointment of the internal auditor to audit books of accounts.
- Assistance in creating value of the business by identifying enterprise/organization-wide risks that exist.
- Offering a platform to its clients to gain more from the business by providing internal audit services of the highest standard.
- Assistance in possessing solid competencies in risk-based auditing and internal control evaluation
- Assistance in generating significant cost savings for various clients.