Our client, a non-profit organisation is looking to engage with an Internal Auditor – either an individual or agency – who can work with them periodically during the year.
Below is the objective and scope of the internal audit. An annual internal audit needs to be done for FY 2021-22.
The objective of audit shall be as under:
Examination and evaluation of the adequacy and effectiveness of internal control systems linked to financial systems and statutory aspects
Review of the accuracy and reliability of the accounting and financial records
Review of means of safeguarding assets
Testing of the reliability and timeliness of the regulatory reporting
The focus is to support on strengthening the financial systems based on the gaps identification
The scope of audit shall be as under:
Review of management of Grants including budgeting, monitoring and compliance with grant conditions.
Funds have been utilised towards the purpose of the grant,
Review the processes followed in utilizing the grant amount,
Conduct Field Visits including validating field level documents
2. Reporting Framework
Understanding of the Financial Reporting Framework as per the grant letter
3. Institutional Framework
Analyzing operational policies and procedures
Review and verify that powers are exercised as per the Delegation of powers
4. Key IT Controls
Review of Tally Structure, Access Controls
Review of Back up & Restore and Disaster Recovery Procedures
5. Finance and Accounting System
Review the maintenance of Books of Accounts.
Review of Cash Flows
Review of Record Keeping including Fixed Asset register
Review of Actual Expenses against budgets
Review of process for payments
6. Statutory Compliance
Review the Statutory Compliances pertaining to the applicable laws of the organisation (FCRA, Provident Fund Act, ESIC Act, Gratuity Act, POSH Act)
Income tax Act, 1961:
1. Verify that proper tax has been deducted and paid within the due dates
2. Verify that quarterly TDS Returns have been filled within the due dates
3. Verify annual Income Tax Return is filled within the due dates.
Review of minutes of Board and Annual General meetings
Review of maintenance of Statutory Registers under Societies Act under which the organisation is registered.
Please note: 3 months onsite - Mumbai