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
- Supply Chain
- Fixed Assets
- Human Resources
- 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.
- 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
- 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