Internal Audit & Governance Risk
Internal Audits are entities set up within an organization to evaluate and examine its financial activities and performance. These types of audits are conducted independently to increase the value and improve an organization’s operations. PVRN follows a disciplined and systematic process to evaluate the effectiveness of risk management and governance processes.
What is Internal Audit for?
As per the Automatic Advancement Scheme (AAS-6), the Internal Control System refers to all the measures and procedures rendered by PVRN to the organization’s management to prepare accurate and comprehensive records of the accounts. Our experts also assist in preparing financial statements according to the government norms and helps in safeguarding the organization’s assets by early detection of any financial irregularities.
Objectives of Internal Audits and Risk Management:
As per PVRN, the scope and objectives of an organization’s internal audit depend on the entity’s size and structure. Our internal auditing process revolves around the following areas:
Accounting system and related internal controls review:
The establishment of the accounting system and related internal controls is the complete responsibility of the management. But, PVRN cross-checks the laid parameters every time we perform an internal audit to ensure their effective operation and make any changes to the system if necessary.
Management of Financial and Operating Information Overview:
The experts at PVRN review the means taken to identify, measure, classify, and report the financial and operating information. We access every step of the process to ensure that proper guidelines are followed, and no errors occur while the reports are made.
Examination Of The Operation’s Economy, Efficiency, and Effectiveness:
PVRN’s team of auditing experts cross-check and verifies all the organization’s financial records, including the economy, efficiency, and effectiveness of the organization’s operations, and gives it a clearance making it easier for the external auditor’s auditing process. This process gives a bearing of reliability from the PVRN’s internal auditing team to the external auditors.
Physical Examination and Verification:
Our team analyzes and verifies the physical existence and condition of the entity’s tangible assets.
What We Do In Internal Auditing and Governance Risk Management:
The internal auditing team at PVRN covers the following functions during the audit:
- The purchase and disposal of assets under proper authorization.
- Ensuring only authorized personnel is granted access to assets at authorized times.
- Verifying the authenticity and accuracy of the accounting, statistical, and financial records.
- Cross-verifying of policies and practices followed while preparing the financial accounts.
- Detection and prevention of financial frauds and errors
- Checking if the internal checks system of the organization is economical and sound.
- Reviewing weakness and operations of internal control systems if any
PVRN’s Internal Audit Framework:
At PVRN, we follow a code for internal auditing purposes. The functions we comply with are:
Formal Charter: The internal audit functions must have a management or board approved formal chatter that includes terms of reference.
The Documentation of Reporting Structure: The internal audit reporting structure by PVRN is documented clearly and formally.
Detailed Testing: A detailed testing is carried out at all the specified areas by our firm to ensure that your organization complies with all the specified norms. The PVRN team reports the findings to the board audit committee.
Competency: PVRN has experienced professionals to assist you in handling even the non-financial aspects of the organization.
Reviewing: The internal auditing team at PVRN reviews the compliance with procurement and disposal procedures periodically and reports it to the board committee.
The internal auditing and governance risk evaluation process by PVRN has been certified by the industry and has experienced professionals with years of experience leading the auditing process. Our risk management team helps your organization achieve its performance and profitability targets, ensure reliable financial reporting, prevent loss of resources, and ensure compliance with laws and regulations, avoiding damage to your brand’s reputation and other consequences.