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Internal Audit Services in Hyderabad

In today's dynamic business environment, companies, especially in the pharma and IT sectors face increasing regulatory scrutiny, operational complexities, and financial risks.

At BC Shetty & Co, we provide robust internal audit services in Hyderabad designed to strengthen governance, enhance internal controls, and improve operational efficiency.

As one of the trusted internal audit firms in Hyderabad, we partner with businesses to identify risks, plug control gaps, and enable sustainable growth.

Introduction to Internal Audit

Internal audit is an objective assurance and independent consulting activity designed for adding value and improving an organization’s operations. It helps organizations accomplish their objectives by evaluating and improving the effectiveness of:

  • Risk management
  • Governance processes
  • Internal controls

Why Internal Audit is Important for Businesses

Internal audit is no longer just a compliance exercise it is a strategic tool.

Key Reasons:

  • Strengthens internal financial controls
  • Identifies fraud risks and leakages
  • Ensures regulatory compliance
  • Improves operational efficiency
  • Supports management decision-making

For pharma and IT companies, internal audits are critical due to high regulatory oversight, intellectual property risks, and cross-border transactions.

Applicability of Internal Audit (Who Needs It?)

Internal audit is mandatory or highly recommended for:

  • Listed companies
  • Unlisted Public Companies

Mandatory if any of the following are met:

  • Turnover: ₹200 crore or more.
  • Paid-up Share Capital: ₹50 crore or more.
  • Outstanding Loans/Borrowings: Exceeding ₹100 crore at any point.
  • Outstanding Deposits: Exceeding ₹25 crore at any point.
  • Private Companies
  • Turnover: ₹200 crore or more.
  • Outstanding Loans/Borrowings: Exceeding ₹100 crore at any point.

Even where not mandatory, businesses engage internal audit firms in Hyderabad to strengthen governance and investor confidence.

Our Internal Audit Services in Hyderabad

At BC Shetty & Co, we offer industry-focused internal audit solutions.

1. Internal Audit for Pharma Companies

Key Risk Areas:

  • GMP (Good Manufacturing Practices) non-compliance
  • Inventory mismanagement (expiry, batch tracking issues)
  • Regulatory non-compliance (FDA, CDSCO)
  • Quality control failures
  • Procurement & vendor risks

Examples:

  • Detection of expired inventory not written off, impacting profitability
  • Gaps in batch traceability, leading to regulatory exposure
  • Weak controls over third-party manufacturing units

Our Focus:

  • Detection of expired inventory not written off, impacting profitability
  • Gaps in batch traceability, leading to regulatory exposure
  • Weak controls over third-party manufacturing units
Pharma Audit

2. Internal Audit for IT Companies

Key Risk Areas:

  • Revenue leakage due to incorrect billing
  • Weak timesheet and project accounting controls
  • Data security and cybersecurity risks
  • Non-compliance with transfer pricing policies
  • Vendor and subcontractor payments

Examples:

  • Revenue loss due to unbilled hours in timesheet systems
  • Incorrect allocation of costs across international entities
  • Weak access controls leading to data breach risks

Our Focus:

  • Project profitability analysis
  • Billing and revenue recognition review
  • IT general controls (ITGC) testing
  • Transfer pricing alignment support
IT Audit

3. General Internal Audit Services

Key Risk Areas:

  • Risk-based internal audits
  • Process audits (procurement, payroll, finance)
  • IFC (Internal Financial Controls) testing
  • Fraud risk assessment
  • SOP design & implementation
  • Management reporting and dashboards

Examples:

  • Identifying gaps in procurement approval processes leading to unauthorized purchases
  • Detecting payroll discrepancies due to weak employee verification controls
  • Reviewing financial reporting controls to reduce fraud and compliance risks
  • Evaluating ineffective SOP implementation causing operational inefficiencies
  • Identifying weak segregation of duties in finance processes

Our Focus:

  • Strengthening internal financial controls (IFC)
  • Improving process efficiency and compliance
  • Fraud prevention and risk mitigation
  • SOP standardization and implementation support
  • Enhanced management reporting and dashboard monitoring
  • Strengthening governance and operational transparency

Our Internal Audit Process

As one of the reputed internal audit firms in Hyderabad, we follow a structured and professional audit methodology:

Planning & Risk Assessment

Understanding business processes and identifying high-risk areas

Process Understanding & Documentation

Mapping workflows and evaluating control design

Fieldwork & Testing

Transaction testing, control validation, and data analysis

Reporting

Actionable audit reports with risk ratings and recommendations

Follow-Up

Tracking closure of audit observations

Key Benefits of Choosing Our Firm

Sections 92D & 92E

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Industry expertise in the pharma and IT sectors

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Risk-based and technology-driven audit approach

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Practical and implementable recommendations

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Strong regulatory and compliance understanding

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Trusted among internal audit firms in Hyderabad

Why Choose BC Shetty & Co for Internal Audit in Hyderabad

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Deep domain expertise in pharma & IT industries

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Proven track record with mid-sized and large enterprises

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Customized audit frameworks (not checklist-based)

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Strong focus on value addition—not just compliance

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One of the reliable internal audit firms in Hyderabad

Compliance & Penalties for Non-Compliance

Failure to comply with internal audit requirements under the Companies Act may result in:

  • Penalties on the company and officers
  • Up to INR 200,000 on the Company
  • Up to INR 100,000 on each Director
  • Up to 6 Months Imprisonment for Directors

Frequently Asked Questions

It is an independent evaluation of a company’s internal controls, processes, and risk management systems to improve efficiency and ensure compliance.

It is mandatory for private companies under the Companies Act, 2013, if

  • Turnover: ₹200 crore or more, or
  • Outstanding Loans/Borrowings: Exceeding ₹100 crore at any point

Typically quarterly or half-yearly, depending on the size and risk profile of the organization.
  • Financial statements
  • SOPs and process documents
  • Invoices and contracts
  • Payroll and HR records
  • System access logs (for IT companies)

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