When internal audit is compulsory.
Section 138 of the Companies Act, 2013 requires the following companies to appoint an internal auditor:
| Company | Internal audit required if, in the previous year |
|---|---|
| Listed company | Always |
| Unlisted public company | Paid-up capital of ₹50 crore or more, turnover of ₹200 crore or more, borrowings of ₹100 crore or more, or deposits of ₹25 crore or more |
| Private company | Turnover of ₹200 crore or more, or borrowings from banks or financial institutions of ₹100 crore or more |
Many UK groups also commission internal audits of smaller Indian subsidiaries voluntarily, because the group's own governance or lenders require it. Internal audit is separate from the annual statutory audit.
What our internal audits cover.
Procure to pay
Vendor onboarding, approvals, purchase orders, payments and related-party vendors.
Payroll and HR
Joiners and leavers, salary changes, PF, ESI and professional tax.
Order to cash
Billing, intercompany invoices, collections and credit notes.
Statutory compliance
TDS, GST, MCA, FEMA and labour law filings.
IT general controls
User access, backups and changes in finance systems.
Internal financial controls
Design and operation of key controls. See Risk Control Matrix (RCM).
Our approach.
Assess the risks
With UK and Indian management, the group's risk register and past findings.
Annual audit plan
Areas, timing and scope approved by the board or audit committee.
Fieldwork
Sample testing, walkthroughs and data analysis, online and on site as needed.
Rated findings
Clear findings with risk ratings, root causes and agreed actions.
Follow up
We track actions to closure and report progress each cycle.
Reporting to the UK.
Our reports are written for UK readers: a one-page summary for the board, rated findings, and the detail for finance teams. We can align the format and ratings with your group internal audit methodology and share findings with your group auditors where you agree. See Internal Audit Services.
Why clients choose us for audits.
Every audit is led and signed by Chartered Accountants in India.
Findings written for UK boards, audit committees and group auditors.
A written engagement letter with scope, timetable and fee.
Independence checks and a second-partner review on every report.
Encrypted document sharing, with site visits where the work needs them.
Clear, prioritised recommendations your team can act on.
Internal audits for UK groups across the country.
We carry out audits in India for UK groups, investors and lenders headquartered anywhere in the UK, reporting in a form their UK boards and auditors can use.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Internal audit FAQs.
Want independent assurance over your Indian entity?
Tell us about the company and its risks. We will propose an internal audit plan and fee.
This page is general guidance based on the Companies Act, 2013, Indian tax law and regulator guidelines as they stand. It is not legal or financial advice for your situation. Thresholds and requirements can change, so please speak to us before acting on it.