Internal Audit

Internal audit is an independent, objective assurance and advisory activity designed to add value and improve an organisation's operations. It evaluates and strengthens the effectiveness of risk management, internal controls, and governance processes across the business.

With Section 138 of the Companies Act, 2013, SEBI LODR, and audit committees demanding deeper assurance, internal audit has evolved from a transaction-checking function into a strategic partner that helps boards, CFOs, and risk leaders see around corners and act early.

We provide outsourced and co-sourced internal audit services for Indian and multinational groups across manufacturing, services, BFSI, retail, and not-for-profit sectors — combining sector experience, risk-based methodology, data analytics, and a clear focus on insights, not just observations.

Our Internal Audit Services

Outsourced Internal Audit

Full-scope internal audit function delivered as a managed service for companies without an in-house IA team.

Co-Sourced Internal Audit

Specialist support to in-house internal audit teams for high-risk areas, niche skills, or stretch coverage.

Risk-Based Audit Planning

Audit universe definition, risk assessment, and multi-year audit plans aligned with strategy and audit committee priorities.

Process & Operational Audits

Reviews of P2P, O2C, R2R, payroll, inventory, fixed assets, project management, and other key business cycles.

IFC / ICFR Testing

Design and operating effectiveness testing of internal financial controls aligned with Companies Act and SEBI requirements.

Compliance & Policy Audits

Review of compliance with statutory laws, regulatory requirements, internal policies, and code of conduct.

Data Analytics & CAATs

100% transaction analysis, exception reports, and continuous auditing using analytics and audit tools.

Audit Committee Reporting

Dashboards, thematic reports, and follow-up MIS for audit committee, board, and senior management.

Our Audit Process

Risk Assessment

Understanding strategy, processes, and risks to define audit universe and prioritise focus areas.

Audit Planning

Annual plan, scope, resource allocation, and approval by management and audit committee.

Fieldwork & Testing

Walkthroughs, transaction testing, control evaluation, and analytics on operational and financial data.

Reporting & Insights

Risk-rated findings, root causes, business impact, and practical recommendations for management.

Follow-up & Monitoring

Tracking implementation, validating closures, and feeding learnings back into the next audit cycle.

Why Internal Audit Matters

✓ Mandatory under Section 138 for many companies

✓ Strengthens IFC, ICFR, and risk management

✓ Identifies process gaps and cost leakages

✓ Detects fraud, errors, and control failures early

✓ Supports audit committee and board oversight

✓ Improves data accuracy and reporting quality

✓ Drives accountability across functions and units

✓ Builds confidence with investors and lenders

FAQs on Internal Audit

What is internal audit?

Internal audit is an independent, objective assurance and advisory activity that evaluates an organisation's risk management, internal controls, and governance processes. It helps the management and audit committee gain assurance that the business is operating efficiently and complying with applicable policies, laws, and regulations.

Which companies are required to have internal audit?

Under Section 138 of the Companies Act, 2013, internal audit is mandatory for listed companies and for certain unlisted public and private companies that cross prescribed thresholds of paid-up capital, turnover, borrowings, or deposits. Many other companies also implement internal audit as a best practice for stronger control and risk management.

Who can be appointed as an internal auditor?

Section 138 allows a Chartered Accountant, Cost Accountant, or such other professional as decided by the Board to be appointed as the internal auditor of a company. The internal auditor may be an individual, a partnership firm, or a body corporate, and may be an employee of the company or an external professional.

How is internal audit different from statutory audit?

Statutory audit focuses on whether financial statements give a true and fair view as per applicable laws and standards. Internal audit takes a broader, ongoing view of risks, controls, processes, and compliance across the business. Statutory audit reports to shareholders, while internal audit reports to management and the audit committee.

What does a typical internal audit cover?

Internal audits typically cover key business cycles such as procurement, sales, inventory, fixed assets, treasury, payroll, and IT, along with statutory and regulatory compliance, IFC / ICFR testing, fraud risk, and selected strategic or operational reviews approved by the audit committee.

How is internal audit linked with the audit committee?

The audit committee is generally responsible for approving the internal audit charter, scope, and plan, reviewing internal audit reports, monitoring implementation of recommendations, and evaluating the effectiveness of the internal audit function. It provides independence and authority to the internal auditor.

How does data analytics enhance internal audit?

Data analytics enables internal audit to test 100% of transactions instead of small samples, identify outliers, monitor key risk indicators, and detect patterns that point to fraud or process weakness. It improves both the depth and timeliness of insights, especially in high-volume areas like sales, procurement, and payroll.

Turn Internal Audit into a Strategic Advantage

Partner with our internal audit experts to strengthen risk management, improve controls, and deliver insights your board values.

Talk to an Internal Auditor