Internal Audit
Internal audit provides an independent review of a business’s operational and financial processes, testing whether internal controls are designed appropriately and operating effectively. Hegde Hegde and Associates LLP provides internal audit services structured around risk assessment, control testing, and management reporting.
Partner reviewedDocumented processBengaluru office
Why Internal Audit Matters
Under Section 138 of the Companies Act 2013, certain classes of companies are required to appoint an internal auditor. Beyond this statutory requirement, internal audit provides management and the board with independent assurance that operational and financial processes are functioning as intended.
Without a structured internal audit function, control weaknesses, process inefficiencies, and compliance gaps often surface only after they have resulted in financial loss or regulatory exposure.
Why Businesses Need This Service
- Statutory requirement to appoint an internal auditor under Section 138 of the Companies Act 2013.
- Growing operational complexity requiring independent review of internal control audit coverage.
- Investor or board expectations for a functioning internal audit and risk management framework.
- Prior instances of control failures, fraud, or process breakdowns requiring independent review.
- Preparation for ISO certification or renewal requiring an internal audit of the relevant management system.
- A need for periodic, risk-based internal audit coverage rather than one-time reviews.
Our Approach
- 01
Assessment
Understanding the business’s processes, risk areas, and existing control environment.
- 02
Planning
Preparing a risk-based internal audit plan covering priority areas.
- 03
Documentation
Reviewing process documentation, policies, and control descriptions.
- 04
Execution
Testing controls and processes against the audit plan.
- 05
CA Review
Independent review of findings before the report is finalised.
- 06
Compliance Verification
Cross-checking findings against statutory and internal policy requirements.
- 07
Reporting
Delivery of an internal audit report with findings, risk ratings, and recommendations.
- 08
Continuous Support
Follow-up review of management’s action plan on prior findings.
Scope of Services
- Statutory internal audit under Section 138 of the Companies Act
- Risk-based internal audit planning and execution across business cycles (procurement, sales, payroll, inventory, and others)
- Internal control audit and testing of design and operating effectiveness
- Process review and gap identification against documented policies
- Internal audit support for ISO audit and certification processes
- Fraud risk assessment and control recommendations
- Follow-up review of management action on prior audit findings
Business Benefits
- Independent assurance on the effectiveness of internal controls.
- Earlier identification of process weaknesses before they result in financial loss.
- Improved board and investor confidence in the business’s control environment.
- Support for ISO certification and other management system audit requirements.
- A structured basis for prioritising process improvements.
Why Choose Hegde Hegde and Associates LLP
- Internal audit findings reviewed by a qualified Chartered Accountant before reporting.
- Risk-based audit planning rather than generic, checklist-driven review.
- Internal audit coordinated with our statutory audit and internal financial controls practices.
- Practical recommendations grounded in the client’s specific operational context.
- Consistent engagement team providing continuity across audit cycles.
Industries We Serve
Our internal audit engagements support technology and IT services companies, manufacturing enterprises with multi-location operations, D2C and e-commerce businesses with high transaction volumes, and companies preparing for ISO certification.
Technology & IT services
D2C & e-commerce
Manufacturing
Startups & funded ventures
Professional services
NRI individuals
Healthcare
Real estate
Financial institutions
NGOs & trusts
Hospitality
Education
Our Process
Each stage produces a defined deliverable, and nothing is issued to a client before the Chartered Accountant review stage is complete.
- 01
Discovery
Understanding the business’s operations and current control environment.
- 02
Assessment
Identifying priority risk areas for audit coverage.
- 03
Documentation Review
Reviewing policies, process notes, and control descriptions.
- 04
Execution
Testing controls and processes against the audit plan.
- 05
CA Review
Independent review of findings.
- 06
Reporting
Delivery of the internal audit report to management or the audit committee.
- 07
Ongoing Support
Follow-up review of remediation actions.
Frequently Asked Questions
Section 138 of the Companies Act 2013, read with the applicable rules, specifies classes of companies based on turnover, borrowings, and other criteria that are required to appoint an internal auditor.
Statutory audit is an independent examination of financial statements to express an opinion on their fairness. Internal audit is a broader, ongoing review of operational and financial processes and controls, and does not result in a statutory audit opinion.
Internal audit is typically conducted on a periodic basis, such as quarterly or half-yearly, depending on the size of the business, risk profile, and any statutory or board-mandated frequency.
Yes. Many ISO management system standards require periodic internal audits of the relevant processes, and our internal audit scope can be structured to support certification or renewal requirements.
Findings are typically reported to management or the audit committee along with recommendations. We also offer follow-up review to confirm that agreed remediation actions have been implemented.
Discuss Your Internal Audit Requirements
Whether you are fulfilling a statutory internal audit requirement or establishing a risk-based internal audit function, our team is available to discuss your specific requirement.
Content reviewed by CA Ramkumar Hegde, Partner, Hegde Hegde and Associates LLP.