What is Internal Audit?

Internal audit is like a quality checker for an organization. It evaluates a company’s internal controls including its corporate governance and accounting processes to make sure everything is working properly. It helps an organization reach its goals by finding ways to improve how it manages risks, controls and governs itself.

According to the Companies Act 2013, there is a rule that companies need to have an internal auditor. This internal auditor can either be a chartered accountant, a cost accountant, or another professional chosen by the company's board. The job of the internal auditor is to check and review the company's functions and activities.

Why Internal Audit? Is it mandatory?

Internal audit is done to check if the company has followed all the applicable rules and laws that apply to it. After doing the check, the Internal Auditor writes a report about compliances and material deviations. This report shows if the company followed the rules or not. Chartered Accountants in Bangalore can play a crucial role in assisting with internal audits for organizations.