1. Objective of the Internal Audit
The objective of the internal audit is to evaluate the adequacy and effectiveness of internal controls, risk management practices, and compliance with applicable laws, regulations, and internal policies within the Human Resources (HR) and Accounts/Finance functions.
2. Scope of AuditA. Human Resources (HR) Function2.1 Recruitment & Onboarding
- Assessment of manpower requisition and approval processes
- Review of recruitment procedures for transparency and compliance
- Verification of employee onboarding documentation and background checks
2.2 Employee Records Management
- Examination of completeness and accuracy of personnel files
- Validation of data maintained in HR information systems
2.3 Payroll & Compensation
- Review of payroll processing controls and authorization mechanisms
- Verification of salary computations, deductions, and disbursements
- Compliance with statutory requirements (PF, ESI, TDS, gratuity, bonus)
2.4 Attendance & Leave Management
- Evaluation of attendance recording systems (biometric/manual)
- Verification of leave records, approvals, and balances
2.5 Statutory & Regulatory Compliance
- Assessment of compliance with applicable labour laws and regulations
- Verification of timely filing of statutory returns and maintenance of registers
2.6 Performance Management & Training
- Review of performance appraisal systems and documentation
- Evaluation of employee training and development programs
B. Accounts & Finance Function2.7 Maintenance of Books of Accounts
- Review of accounting records for accuracy, completeness, and timeliness
- Verification of journal entries, ledgers, and trial balance
2.8 Revenue & Receivables
- Evaluation of billing processes and controls
- Verification of debtor balances and aging analysis
2.9 Procurement & Payables
- Review of purchase procedures, approvals, and documentation
- Verification of vendor invoices and creditor balances
2.10 Cash & Bank Management
- Examination of cash handling controls and procedures
- Review of bank reconciliations and transaction accuracy
2.11 Inventory Management
- Physical verification of inventory
- Assessment of inventory valuation methods and reconciliation with financial records
2.12 Fixed Assets
- Verification of fixed asset register and capitalization policies
- Review of depreciation calculations and physical existence of assets
2.13 Statutory Compliance
- Verification of compliance with GST, TDS, and other applicable tax laws
- Review of returns filing and tax payments
3. Industry-Specific Audit Considerations
- Costing systems and allocation of manufacturing overheads
- Work-in-progress (WIP) valuation accuracy
- Scrap and wastage control mechanisms
- Reconciliation between production records and inventory
4. Internal Control Evaluation
- Adequacy of segregation of duties
- Authorization and approval hierarchies
- Effectiveness of ERP/system controls
- Risk identification and mitigation mechanisms
5. Audit Methodology
- Risk-based audit approach
- Review of policies, procedures, and supporting documentation
- Sample-based transaction testing
- Interviews with key personnel
- Analytical procedures and variance analysis
6. Deliverables
- Identification of control gaps and non-compliance issues
- Risk categorization (High / Medium / Low)
- Practical and actionable recommendations
- Formal Internal Audit Report with management responses
Pay: ₹40,000.00 - ₹60,000.00 per month
Work Location: In person
