Internal Audit in any organization helps to identify areas where the organization can optimise time & cost efficiency by examining the day-to-day tasks of the departments and people in the organization and to bring to improve upon the deficiencies and drawbacks in the system. It is an essential part of an organization. Internal audit is an independent activity within an organization for review of various financial and other activities. It ensures the organization’s compliance with relevant laws and regulations of the Government/organization. It promotes ethics and identifies improper conduct within the organization.

Objectives of Internal Audit

While external audits mostly focus on financial risk, internal audit has a wider range of responsibilities and different reporting requirements. The objectives of Internal Audit are as follows:-

• To help in risk management
• To comply with all relevant laws and regulations of the government/organizations
• To identify weaknesses in an organization’s internal procedures and suggest improvements.

Responsibilities of Internal Audit

While external audits mostly focus on financial risk, internal audit has a wider range of responsibilities and different reporting requirements. The objectives of Internal Audit are as follows:-

• Oversee the implementation of policies, procedures, orders, and other guidelines of the Institute.
• Pursue with statutory audit office to drop/settle objections /audit paras raised by them during an audit of accounts of the Institute.
• Examine and report to management on audit observations/irregularities brought to the notice by the statutory audit.
• Examine and ensure the financial activities of the Institute are carried out as per the prevailing laws/norms of the Institute.
• Evaluate financial and operational procedures to assure adequate internal controls are present.
• Identify, assess, and evaluate the Institute’s risk areas; make appropriate recommendations for improved internal controls and accounting procedures.