Internal Audit Services in Hyderabad
BC Shetty & Co

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:

icon Risk management

icon Governance processes

icon 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:

icon Strengthens internal financial controls

icon Identifies fraud risks and leakages

icon Ensures regulatory compliance

icon Improves operational efficiency

icon 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:

icon Listed companies

icon Unlisted Public Companies

Mandatory if any of the following are met:

Turnover: ₹200 crore or more.
Mandatory if any of the following are met:
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.

icon 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 and 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

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

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

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

Industry expertise in the pharma and IT sectors

Risk-based and technology-driven audit approach

Practical and implementable recommendations

Strong regulatory and compliance understanding

Trusted among internal audit firms in Hyderabad

Compliance & Penalties for Non-Compliance

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

icon Penalties on the company and officers

icon Up to INR 200,000 on the Company

icon Up to INR 100,000 on each Director

icon Up to 6 Months Imprisonment for Directors

Why Choose BC Shetty & Co for Internal Audit in Hyderabad

Deep domain expertise in pharma & IT industries

Proven track record with mid-sized and large enterprises

Customized audit frameworks (not checklist-based)

Strong focus on value addition—not just compliance

One of the reliable internal audit firms in Hyderabad

Frequently Asked Questions

1. What is an internal audit?

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

2. Is an internal audit mandatory for my company?

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

3. How often should internal audits be conducted?

Typically quarterly or half-yearly, depending on the size and risk profile of the organization.

4. What documents are required?

Financial statements
SOPs and process documents
Invoices and contracts
Payroll and HR records
System access logs (for IT companies)

Internal Audit Services in Hyderabad
BC Shetty & Co