Internal Audit

Khandhar Mehta and Shah | Internal Audit

internal audit

Companies sometimes bear the misconceptions that getting audited is something they should try to avoid until and unless it’s a governmental or statutory obligation.

When it comes to an internal audit, it is often neglected by companies for want of legal obligation or lack of time and resources. But when the management tries and understands the importance and underlying objective of getting internal audits, and all the benefits it offers, the process of internal audit becomes more valuable and pleasant. KMS provides the most precise and best quality internal audit service in Ahmedabad, and here is everything you need to know about our internal audit services.

What is internal audit

Internal auditing is aimed at evaluating the company’s internal control framework, corporate governance mechanism, compliance with laws, accounting processes to ensure accurate and timely financial reporting, operational efficiencies, and safeguarding of assets. Internal audit aids the organization in accomplishing all its strategic missions and objectives by introducing a systematic and disciplined approach and methodology to improve risk management, governance policies and brings compliance to rules and regulations. It provides necessary confidence to the management that the company can meet the demands of the ever-changing external environment.

Rapidly changing compliance requirements, globalization, new business models, unique financial transactions, and lack of quality resources create a lot of stress on internal audit professionals of the companies. Increased competition from online and offline businesses has changed business formats and changed the way of doing business along with the internal procedures related to procurements, sales, finance, and inventory.

It is the right time for a business to have a relook at the internal control environment and tweak them appropriately to remain competitive and efficient. Our Internal audit service provides actionable insights to enhance the effectiveness of internal controls.

Our internal audit service helps the executives and board of members with better managing the performance, risks, and output of employees. It helps them in keeping a check on the financial condition of the firm and bring efficiency, effectiveness, and quality in the business. Managing risks, optimizing internal controls, and improving corporate governance are some of the main features of our internal audit services.

Importance and objectives of internal audit…

We firmly believe that internal audits, when carried out with accuracy and transparency, can add so much value to your organization. Our auditors look beyond your financial statements and keep a broader view, which includes a closer look at policies, procedures, operational controls, segregation of duties, and safeguarding of assets. Our internal auditors carry out audits keeping in mind the individuality of each company, scope of work, and objectives of the audit.

Khandhar Mehta and Shah
for a journey beyond excellence.
knowledge. Experience.  Teamwork.

Being one of the renowned CA firms in Ahmedabad, we always focus on giving our clients the best in class services that reflect our values and vision of transparency, flawless, and professional work. Visit our CA website to understand and know more about our services and our company. Choose us for your business as the best deserves the best.

our internal audit services

Strategic Review of the Internal Audit Function

Some organizations have their own internal audit department and want us to review their internal audit function. In such cases, we understand and evaluate its operating procedures, methods, and capabilities vis a vis department’s objectives to identify and implement better processes and control mechanisms.

Co-sourcing

In Co-sourcing assignments, we work with your internal team and provide them with the best practices, software tools, internal audit checklists, and necessary guidelines to carry out their work more effectively. We guide them in every step of the way while carrying out process studies, risk assessment, audit planning, and execution so that they can be self-reliant in this matter.

Outsourced Internal Audit Service

Our outsourced internal audit service is aimed at providing a full-fledged service wherein we carry out the audit with our experienced auditors and domain experts. At the end of the audit, we provide you internal audit report with our recommendations and help you implement those recommendations.

internal controls policies and procedures development

Our internal auditors provide their expert guidance on developing internal control policies and procedures and help you improve the control framework within the organization.

bussiness process optimization

Our auditors study your current business processes, compare them with the best practices, identify weaknesses and improvement opportunities, and devise a new set of business processes to achieve higher efficiencies.

follow-up engagements

We do undertake follow-up engagements where we help you implement recommendations from the last internal audit report to ensure better compliance and operational efficiencies.

internal audit process that we follow

Our internal audit process includes the following steps:

FOLLOW-UP

The final phase of auditing ends with our auditor ensuring that the client is implementing all the important recommendations and ideas. This is one of the most important and crucial steps which is often overlooked or neglected. But as a company for whom clients are the most important asset, we at KMS make sure this last step is also carried out diligently.

REPORTING

After the fieldwork is done, our auditor prepares an internal audit report during this phase. The reports are made with utmost accuracy to avoid any error or misrepresentation. The work doesn’t just complete here; our auditors further recommend you possible recommendations and ideas so that your company can have ample opportunities to improve and grow.

PLANNING

Our internal auditor sets up a meeting with the client’s management and defines the objective, scope, and make the management familiar with all the important review requirements related to the risk-based internal audit. This review requirements might include the rules, regulations, laws, procedures, and policies relevant to the company. Our auditor will then set a timeline according to which the auditing process will be carried out. Along with this, the audit budget, audit plan, and other important meetings are also planned.

FIELDWORK

This step is where the actual auditing takes place. Our audit teams execute the whole plan in this step. This is a very elaborate process where interviews with important people of the company to understand the process take place; important information is reviewed, internal controls are tested, documentation of work and recommendations are made.

Internal Audit Firm in Ahmedabad

trust.  transparency.  professional expertise.

frequently asked questions(faqs)

They examine the tolerance for risk of the company; it detects and mitigates the potential risk and also communicates the risk with the management.
Internal audit refers to the audit function carried out within an organization to review the routine activities and give suggestions if there is a scope of improvement. The opinion is made on the effectiveness of activities done in the organization. The obligation is not compulsory, but it’s a continuous process. The external audit is an audit performed to analyze and verify the authenticity of the financial statements of the company. The opinion is made on the truth and fairness of the financial statement.
As per Section 138 of Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rules 2014, a certain class of companies are required to appoint internal auditors. Every listed company shall mandatorily appoint an internal auditor or a firm of internal auditors. An unlisted public company is required to appoint an auditor if, its paid-up share capital exceeds Rupees fifty crores, or turnover exceeds Rupees two hundred crores, or, its outstanding loans or borrowings from banks or financial institutions exceed Rupees one hundred crores, or, its outstanding deposits exceed Rupees twenty-five crores. Every private limited company having turnover of Rupees two hundred crores or more or outstanding loans or borrowings from banks or public financial institutions exceeding Rupees one hundred crores or more at any time during the preceding financial year shall appoint an internal auditor.