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Internal Audit

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Mandatory Appointment of Internal Auditor: Section 138 Companies Act 2013

Company Law : Understand the mandate of appointing internal auditors as per Section 138 of the Companies Act 2013. Explore the criteria for mand...

May 17, 2024 795 Views 0 comment Print

Case Study on Internal Audit Case of NSEL

CA, CS, CMA : Explore the NSEL internal audit case, uncovering gaps in compliance, fraudulent practices, and the crucial lessons learned for cor...

April 3, 2024 981 Views 1 comment Print

Evolving Role of Internal Auditors (IA) in NBFC Risk Management

CA, CS, CMA : Explore the changing landscape of internal audit roles in Non-Banking Financial Companies (NBFCs), regulatory shifts, and their im...

March 13, 2024 549 Views 0 comment Print

Tips for Internal Audit for scrap metal and other materials from different sections of manufacturing unit

CA, CS, CMA : Learn how to conduct an internal audit on scrap metal and materials, ensuring compliance, efficiency, and accuracy with a comprehe...

February 13, 2024 1011 Views 0 comment Print

How to Check Purchase/Procurement Expenses & Process Simplification

CA, CS, CMA : In this comprehensive article, the author unveils a strategic checklist tailored for navigating the intricate landscape of purchas...

January 27, 2024 2145 Views 0 comment Print

Latest News

CA Firms Engagement in PSBs: Recent Changes and Trends

CA, CS, CMA : Discover the latest developments in the engagement of CA firms by PSBs. Explore changes in concurrent audit policies, RBI directiv...

December 5, 2023 1239 Views 0 comment Print

Allow company Secretaries to do Internal Audit of Companies under Section 138: ICSI

CA, CS, CMA : Proposed amendments to Section 138 of Companies Act, 2013 by ICSI. Understand why Company Secretaries are equipped to conduct inte...

September 8, 2023 33501 Views 1 comment Print

FAQs: Professional ethics of members pertaining to Bank Assignments

CA, CS, CMA : Firm of Chartered Accountants cannot accept branch Audit of the Bank if one of the partners has taken the loan from any branch of ...

April 10, 2023 9150 Views 0 comment Print

ICAI clarifies on LFAR & Certification by Concurrent/Internal Auditor

CA, CS, CMA : The concurrent Auditor of a Branch can undertake the assignment of LFAR only with respect to Branches which are not subject to Sta...

April 10, 2023 7614 Views 0 comment Print

PFRDA to Appoint CA/CMA firm as Internal Auditor

CA, CS, CMA : Request for Proposal for Appointment of Chartered Accountant/Cost Accountants Firm as Internal Auditor of PFRDA for the F.Y.2021-2...

September 27, 2021 1326 Views 0 comment Print

Latest Notifications

Non-appointment of Internal Auditor: MCA imposes ₹2.5 Lakh Penalty

Company Law : Government imposes a penalty of ₹2.5 lakh on Systematix Securities Ltd for not appointing an internal auditor during FY 2022-23,...

April 4, 2024 1041 Views 0 comment Print

Company Failed to Appoint Internal Auditor: MCA imposes Penalty of Rs. 4.50 Lakh

Company Law : Read the adjudication order on Kudos Finance & Investments Private Limited as MCA imposes a penalty of Rs. 4.50 lakh for violating...

February 9, 2024 339 Views 0 comment Print

Non-appointment of Internal Auditor (Section 138(1): MCA Imposes Penalty

Company Law : MCA imposed penalties on Muthootu Mini Nidhi Limited for non-compliance with provisions of Section 138 of Companies Act, 2013. Pen...

November 9, 2023 21966 Views 0 comment Print

Risk Based Internal Audit (RBIA) in NBFCs/UCBs

Fema / RBI : An independent and effective internal audit function in a financial entity provides vital assurance to the Board and its senior ma...

February 3, 2021 5817 Views 0 comment Print

Internal Audit Procedure of Registration Process of Charitable Trusts

Income Tax : It has been recommended by the Hon'ble Public Accounts Committee that the process of the Registration Process of Charitable Trusts...

December 14, 2018 3339 Views 0 comment Print

Satyam account cleaning to take six months: ET

February 12, 2009 267 Views 0 comment Print

MUMBAI: The “cleaning up” or restating of scam-tainted Satyam’s accounts is expected to take at least six months as the newly-appointed auditing firms will have to scrutinise the company’s fudged numbers back to 2002, a top source said. “Efforts to restate the accounts are progressing rapidly. The Board expects this task to take at least […]

ICAI will pass ruling directing all firms to get their internal audits reviewed by an outsider

February 8, 2009 231 Views 0 comment Print

The Institute of Chartered Accountants of India will pass a ruling directing all firms to get their internal audits reviewed by an outside’.  Uttam Prakash Agarwal, who has replaced Ved Jain as president of ICAI with effect from February 5, said that this practice of an external firm reviewing the internal books of a company […]

Role of Internal Auditor in Enterprise-wide Risk Management (ERM)

September 26, 2007 453 Views 0 comment Print

This programme of enterprise-wide risk management was highly successful and resulted in substantial savings and structured decision-making with learnings for the company. The Board appreciated the consulting role of the Internal Audit Department which had fulfilled its role aptly described as ‘Best Practice Transfer and Risk Management’ and directed the CIA to ensure that this programme was spread to all functions of the company. The Board also directed the CIA to submit a list of top 50 risks (along with remedial measure taken and proposals for taking remedial measures, if not already undertaken) identified during the exercise every quarter. The structure of risk management within the company was thus institutionalised.

Using Audit Tools- Purchase and Accounts Payable- Case Study

September 26, 2007 2197 Views 0 comment Print

Using several features of the audit tools, the auditor was able to increase the depth of his audit and also do it faster. In this way, he was able to focus on streamlining processes and spend more time interacting with officials on business issues which were useful sources for analytical information. This was appreciated by the management.

Frauds — A compilation

September 26, 2007 372 Views 0 comment Print

During the audit of a bank branch (which is a semi-urban branch and has been put under concurrent audit for the first time), the concurrent auditors found that the total working is in a mess. Loan applications for loans already disbursed are not on record, disbursement conditions are not complied with, hypothecation agreements are incomplete, mortgages wherever necessary are pending and number of lacunae are observed in the processing of proposals, which are under the Branch Manager’s powers.

Using Audit Tools — Inventory Case Study

September 26, 2007 799 Views 0 comment Print

Using the analysis done offline in India, the auditors were able to focus their energies during a short visit on the core-concern areas and arrive at conclusions that were startling. Considering the focus on accountability in the US with the Sarbanes-Oxley legislation, the CEO and the CFO were taken aback at the status of internal controls in their organisation. Emergency measures to establish an elaborate exercise for implementing a robust internal control system with self- ssessment questionnaires was taken. Considering the success that Raj and his team had in meeting these new challenges, the management asked Raj whether his team would take this assignment in addition to the audit responsibility, which he gladly accepted. This resulted in considerable cost savings. Further, looking at the tremendous cost savings and approach towards auditing by Raj and his team, a performance bonus was sanctioned.

Internal Audit of Maintenance — Electrical motors Case study

September 26, 2007 1245 Views 0 comment Print

The top management of a chemical company, with 400 crores turnover, is extremely happy with its internal audit department specially with the cost saving measures recommended by the department. The company has two plants in Thane (Mumbai) and Vapi (Gujarat), with its corporate headquarters. The company is presently facing problems with high cost of production and is finding that the products manufactured at its Thane and Vapi plants are not competitive vis-à-vis other chemical manufacturers in the organised sector. The company also finds that the shutdown hours for the factories were quite high. The Managing Director holds a meeting with the Chief Internal Auditor (CIA) and requests him to conduct a review of Thane and Vapi plant production units’ operations and suggest improvement measures to ensure that the plant is more efficient and effective to maintain its competitiveness vis-à-vis the threat from competitors. He also informs the CIA how important it is to reduce cost of operations, failing which he is concerned that the units would have to be closed down in the near future.

Implementing Risk Management — A case study

September 26, 2007 1803 Views 0 comment Print

In a large engineering company operating in Western India having global operation, a new Chief Audit Executive (CAE) was appointed. The CAE had joined this organisation based on the public positioning of the group but felt disappointed within a few months of joining. The organisation had grown organically and was largely family-owned with the senior management being hands on with the operations of the company. The Internal Audit culture had not yet matured and was largely focussed on ‘compliance’. The budget was not sufficient as the management had very low level of expectations from the internal audit function which was mainly compliance-driven.

Internal Audit of Sales

September 26, 2007 17770 Views 0 comment Print

A leading consumer goods industry in India, with a turnover of more than Rs.250 crores with activities spread across the country covering both the urban and rural markets, has been facing a downward trend in its sales along with rising marketing costs. Top management has been grappling with a changing consumer preference trend guided by the entry of a strong MNC competitor. Some major promoters and key marketing personnel have changed loyalties and have shifted to competition. The Board has been concerned about this disturbing trend and has been reviewing the strategies being adopted by the company to adapt to these changes and retain the earlier good performance. Audit Committee meeting held along with this Board Meeting focussed on this important business issue.

Internal Audit of Payroll

September 26, 2007 47952 Views 0 comment Print

Background :In the IT Industry, the key asset is the human resource. Payroll for an information technology company therefore forms the single largest component of expense. The success of an IT based organisation depends on the size and quality of its human resource. The activity is performed by these resources at the client’s site which often is spread over the world and in the development centres within the country. This results in movement of resources between clients and development centres.

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May 2024