Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve organizational performance. It is an inevitable function in today’s competitive environment.

The scope of an internal audit, in contrast to a statutory financial audit, is decided by the appointing authority; the directors, CEO, senior management etc. as the case may be. The scope can cover business operations of production, purchasing, selling, customer accounts, payroll and review of monthly financial reports etc.

Internal audit will keep a continuous vigilant eye on the operation of internal controls if such controls are satisfactory in their design, or suggest improvements to the design, if the design is defective.

Internal Audit can check accuracy of financial and other information provided to management, undertake input – output reconciliations, inventory counts and cash counts, evaluate the safeguards afforded to assets, and, perform special investigations assigned by the management.