What is Internal Audit?

Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, internal controls, and governance processes.

Unlike statutory audits, which are mandated by law and focus on financial reporting, internal audits are voluntary and proactive—driven by management’s desire to improve business performance and safeguard against potential risks.

Scope of Internal Audit

Our Internal Audit services are customized to suit your organization’s size, sector, structure, and risk profile. Our scope typically covers:

• Operational Efficiency Audits
  Evaluating processes, workflows, and resource allocation to ensure optimal efficiency and cost-effectiveness.

• Compliance Audits
  Reviewing compliance with internal policies, procedures, corporate governance codes, and applicable legal and regulatory requirements.

• Risk Management Review
  Identifying, assessing, and monitoring operational, financial, and strategic risks within the business processes.

• Internal Control Evaluation
  Testing the effectiveness and reliability of internal control mechanisms, including segregation of duties, authorization processes, and access controls.

• Financial and Accounting Audits
  Verifying financial transactions, reconciliations, accounting systems, and reporting structures for accuracy and integrity.

• Fraud Risk Assessment
  Identifying vulnerable areas and control weaknesses that may lead to financial irregularities or employee misconduct.

• IT and Information Systems Audit
  Assessing the integrity, reliability, and security of systems and data handling processes.

Objectives of Internal Audit

• Ensure accuracy and reliability of financial and operational data

• Strengthen internal control systems

• Promote compliance with applicable laws and regulations

• Identify and mitigate business risks

• Prevent fraud and misuse of assets

• Enhance operational efficiency and cost control

• Provide assurance to management and stakeholders

Our Internal Audit Methodology

At Saket Mahajan & Co., we follow a structured, risk-based internal audit approach tailored to your business needs:

1. Understanding the Business Environment
   Conducting a detailed study of the business model, processes, organization structure, and key risk areas.

2. Risk Assessment & Planning
   Identifying high-risk functions, developing an audit plan, and prioritizing key audit areas based on risk exposure.

3. Fieldwork & Process Testing
   Gathering data, performing walkthroughs, evaluating controls, and testing key processes for control gaps and compliance.

4. Findings & Recommendations
   Documenting deviations, inefficiencies, and non-compliance with actionable recommendations for process improvements.

5. Reporting
   Delivering detailed internal audit reports with risk categorization, root-cause analysis, and suggested corrective actions.

6. Follow-up Audits
   Conducting review audits to ensure implementation of audit recommendations and monitor continuous improvement.

Why Choose Saket Mahajan & Co. for Internal Audit?

• Expertise in cross-functional audits and process improvement
• Domain-specific knowledge across sectors
• Independent and objective assessment
• Proactive identification of risk and fraud red flags
• Use of modern audit tools and techniques
• Seamless coordination with internal teams and management
• Emphasis on value addition, not just compliance