Internal & Management Audits


  • Independent, objective verification of an organisation’s operations designed to evaluate its control systems
  • Concerned with evaluating and improving the effectiveness of risk management, control and governance processes
  • Beyond traditional scope of checking accounting entries
  • Focus on Enterprise Risk Evaluation of all departments
    • Accounting
    • Finance
    • Operations
    • Inventory
    • Supply Chain
    • Fixed Assets
    • Human Resources

Scope :

  • Internal Audit & Management Audit
  • Enterprise Business Processes – Review, design, improve and implement
  • Risk Assessment – all types of business risks
  • Control Environment – Evaluation and implementation of Management’s control activities
  • Information and communication – Evaluation of risk and controls
  • Monitoring / Reporting – Effectiveness of Monitoring & Reporting Processes

Retail & Store Audits

  • Retail stores and chain stores, whether in product or services, owned brand and merchandised, have a specialised set of problems. The requirement of auditing retail stores are different and there is a need for specialised approach to the same.
  • Progress Partners has been in involved in Audit of Retail Stores and other Chain Outlets for a long time and developed the domain expertise.

Scope :

  • Stock Verification
  • Tender Verification and reconciliation
  • Transaction Audit
  • Inventory Movement including review of abnormal movement
  • Review of Discounts and freebies
  • Consumption analysis v/s standards
  • Audit of adherence to Brand Standards and SOP

Internal Controls on Financial Reporting (ICFR)

  • Required under the Companies Act, 2013 under Sec 143(3)(i)
  • Material weakness in Internal Financial Controls (IFC) may exist even when the financial statements are not materially misstated.
  • ICFR Reporting is in addition to reporting for financial statements.
  • Auditors are required to opine on whether :
    • Company has an adequate internal financial controls (IFC) system
    • operating effectiveness of such controls
  • Unlisted Companies : Rule 8(5)(viii), Companies (Accounts) Rules, 2014 – Directors’ Report to state details of adequacy of Internal Financial Controls.
  • Listed Companies : Section 134(5)(e) – Directors’ Responsibility Statement to state that it laid down Internal Financial Controls they are adequate and were operating effectively

Scope :

  • Setting up of Enterprise Risk Management system
  • Repository of Internal Controls
  • ICFR Testing protocols and SOP
  • Testing of Internal Controls
  • IFC Consulting
  • Training on ICFR