Internal Audits are becoming more important for companies to control the risk. And often client ask for an Internal Audit Program, I had prepared one for the client. And sharing it so that others can get an idea of what is essential to cover up in Internal Audit.

The scope i prepared was for a branch, but it will suite the head office too.


Ref: 2013/jul/01                                                                                  14/07/2013


Sub: Proposed Brief Program for Internal Audit





Policy Compliances ( Includes Policies framed for prevention of Fraud, Mismanagement and carrying out the transaction at Branch)

This includes verification of the Internal Controls within Branch as exercised by Head office.


Verifying whether the internal control systems followed by Head office are adequate to prevent any Fraud, Mis-Management or havoc at Branch.


Reporting the Deviation in Execution of Policy and Suggesting the alternative policies in case present policies are not sufficient in achieving the Control Object.


Statutory Compliances

Verifying whether the Branch has filed all its required Statutory Return, whether All statutory dues are remitted within the due date.


Reporting of any deviation with suggestions.

Inventory Management

Checking the physical stocks and reporting deviations.


Verifying the Inventory management system and reporting of any limitation noted in policy.

General Accounts Scrutiny

Verifying whether the Transactions are Recorded up to Date.


Verifying recorded transactions are supported by valid documents


All documents are properly Authorized by the competent officers of company.


Debtors Ageing and reporting the uncomfortable Balances.


Expenses Scrutiny.


Verification of Head office and Brach Accounts Reconciliation.


Verification of Bank Statement Reconciliation.


Verification of Cash & Bank Payments, Scrutinizing negative cash balances.


Fixed Assets physical Verification, authorization control and Verifying the Depreciation calculation.


Verifying the purchases and Reporting of purchases made from suppliers other than approved by head office and whether purchases are made only from quotation winning suppliers.



Reporting of any deviation with suggestions.

Scope as decided by Management

Further we should perform the procedures and verifications on Scope as decided by management, whether included in above list or not.


Scope may be changed by management from period to period; checks and procedures may be selected for each period from time to time.



Price Quotation for the Internal Audit 

Time required for Work to be Performed       = Approximately 7 days including Travel

Charges for a Day                                           = 3500

Total charges for the Work                             = 24500*


*Total Approximate charges are the minimum Fees for the work to be done and are not fixed on the basis of days; however the minimum fees will change according to the minimum days as thought to be fit by Management. And if extra days are requested by client, each day will be charged 3500.


*Travel, Accommodation, Local conveyance, and other charges associated with our stay and travel or carrying out the work at client premises are to be reimbursed by client.


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Posted 4 years, 2 months ago by CA Pulkit Sharma

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