What is an internal audit?
Think of an internal audit as a health check-up for your business. A doctor checks your blood pressure and heart before small problems become serious. An internal auditor does the same for your company. We check how money comes in and goes out, how stock is managed, who approves what, and whether everyone follows the rules.
The goal is not to catch people out. It is to find gaps early, such as a payment made without approval, stock that does not match the books, or a process that wastes time. Then we help you fix them.
The result is a business that runs smoothly, loses less money and is ready for growth, investors, bank loans and statutory audits. If your books or tax filings also need attention, our accounting services in Chennai and GST and income tax consultation teams can help.
In simple words: an internal audit tells you what is working, what is not, and what to do about it.
Internal audit vs statutory audit: what is the difference?
Many business owners think one audit is enough. In fact, the two do very different jobs.
| Aspect | Internal audit | Statutory audit |
|---|---|---|
| Main purpose | Improve processes and controls, and reduce risk | Give an opinion on whether the financial statements are true and fair |
| Who it is for | Owners, management and the board | Shareholders, government and the public |
| When it happens | Throughout the year (monthly, quarterly or as needed) | Once a year, after the books are closed |
| What it covers | Any process: purchases, sales, stock, payroll, IT, compliance | Mainly the financial statements |
| Scope decided by | You, the board or the audit committee | The law and auditing standards |
| Output | Practical findings and an action plan | An audit report and opinion |
Under Section 144 of the Companies Act, 2013, your statutory auditor cannot also act as your internal auditor. That is why many companies appoint an independent firm like Coreinfo.
7 signs your business needs an internal audit
If two or more of these sound familiar, it is a good time to talk to us.
- 1Profits look good on paper, but there never seems to be enough cash.
- 2Stock counts often do not match what the system says.
- 3One person handles buying, approving and paying, with no second check.
- 4You are not sure every GST, TDS or payroll deadline is being met.
- 5The business has grown fast and processes have not kept up.
- 6You are planning to raise funds, take a bank loan or bring in a partner.
- 7Your statutory auditor keeps pointing out the same problems every year.
Our internal audit services
Every business is different, so we pick the right mix for your size, industry and priorities.
Risk assessment & audit planning
We find the biggest risks in your business and decide which areas to review first, so time is spent where it matters most.
Financial & operational audits
We review accounting, purchasing, sales, inventory, payroll and other day-to-day processes for errors, leaks and waste.
Internal control reviews
We test approval steps, separation of duties and how your assets are protected, and tell you where controls are weak or missing.
Compliance & SOP reviews
We check whether your team follows your own policies, standard operating procedures and the rules that apply to you.
Management reporting
You get findings, risk ratings and recommendations in plain language, with a clear owner and deadline for each action.
Follow-up reviews
We come back to check that the agreed fixes were made and that they actually solved the problem.
Business areas we audit
Tap an area to see what we check.
Purchase to pay
Vendor selection, purchase orders, goods receipt, invoice matching and payments. We look for duplicate payments, missing approvals and unfair vendor terms.
Order to cash
Quotations, pricing, discounts, invoicing and collections. We check that every sale is billed correctly and that money is collected on time.
Inventory & warehouse
Stock records, physical counts, slow-moving and damaged items. We find gaps between the books and what is really on the shelves.
Payroll & HR
Attendance, salary calculations, deductions and exits. We check for ghost employees, wrong payments and missed statutory dues.
Cash, bank & treasury
Petty cash, bank reconciliations and payment authorisations. We make sure every rupee is accounted for.
Fixed assets
Asset registers, tagging, physical verification and disposals. We confirm your assets exist, are in use and are recorded properly.
Statutory compliance
GST, TDS, PF, ESI and other filings. We check that returns are filed on time and that payments match the books.
IT & system access
User access in your accounting software or ERP, password practices and data backups. We check that only the right people can change data.
Free internal control health check
Answer 6 quick questions honestly. Nothing is saved or sent anywhere.
How our internal audit works
A clear, step-by-step process, so you always know what is happening and what comes next.
- 01
Understand your business
We meet you and your team to learn how the business works, what worries you and what has changed recently.
- 02
Assess risks & plan
We rank the risks and agree an audit plan with you: which areas, how deep, and by when.
- 03
Review & test
We study documents, test samples of transactions, walk through processes and talk to the people who run them.
- 04
Discuss findings
Before anything is final, we go through every finding with the process owners, so there are no surprises.
- 05
Report & recommend
You receive a clear report with risk ratings, root causes and practical fixes, each with an owner and deadline.
- 06
Follow up
We check back to confirm the fixes are in place and working, and update you on progress.
What your business gains
Fewer losses and leaks
Catch duplicate payments, wrong billing and missing stock early.
Stronger controls
Clear approvals and checks so no single person can make costly mistakes alone.
Fewer compliance surprises
Stay on top of GST, TDS and payroll rules and avoid penalties.
Smoother processes
Remove extra steps and delays so your team works faster.
Better decisions
Reliable numbers give you the confidence to plan, invest and grow.
Trust from banks & investors
Well-controlled businesses are easier to fund and easier to scale.
Choose how you work with us
Pick the model that fits your size and budget. You can change it as your business grows.
Outsourced internal audit
We act as your full internal audit team. We plan, carry out and report on audits through the year.
Best forGrowing SMEs without an in-house audit team
Ask about thisCo-sourced support
We work alongside your existing internal audit team and add specialist skills where you need them.
Best forCompanies with a small internal audit function
Ask about thisFocused reviews
A one-time, deep review of a single area such as inventory, payroll or purchasing.
Best forBusinesses with a specific concern
Ask about thisIs internal audit mandatory for my company?
For some companies in India, yes. Under Section 138 of the Companies Act, 2013 and Rule 13 of the Companies (Accounts) Rules, 2014, an internal auditor must be appointed by:
- Every listed company.
- Unlisted public companies with paid-up share capital of ₹50 crore or more, turnover of ₹200 crore or more, outstanding bank loans of more than ₹100 crore, or outstanding deposits of ₹25 crore or more in the previous financial year.
- Private companies with turnover of ₹200 crore or more, or outstanding bank loans of more than ₹100 crore in the previous financial year.
Even if the law does not require it, most growing businesses benefit from an internal audit. Smaller companies often have fewer checks in place, which makes errors and fraud easier. Not sure where you stand? We will tell you in one call.
Who leads your internal audit
Narendra Reddy
Director – Internal Audit & GRC
- FCA
- ACMA
- CISA
- M.Com
- MBA
- Member, IIA
Over 15 years of experience in internal and performance audits, investigations, system implementations, process reviews, governance, risk and compliance, and business restructuring across a range of industries.
Meet the teamInternal audit: frequently asked questions
How often should an internal audit be done?
Most businesses do it quarterly or half-yearly. High-risk areas such as cash, purchasing and inventory may need monthly checks. We help you choose the right frequency based on your size and risks.
How long does an internal audit take?
It depends on the size of your business and the areas covered. A focused review of one area can take a few days, while a full audit of a mid-sized company may take a few weeks. We agree the timeline with you before we start.
Will an internal audit disturb my team’s daily work?
Very little. We plan our requests in advance, work around busy periods and keep meetings short. Most of the review is done with documents and system data.
Can our statutory auditor do the internal audit too?
No. Section 144 of the Companies Act, 2013 does not allow the statutory auditor to provide internal audit services to the same company. You need a separate internal auditor.
Is internal audit only for large companies?
No. Startups and SMEs often benefit the most, because they usually have fewer checks in place. A simple internal audit can stop small problems from becoming expensive ones.
What will I receive at the end of the audit?
A clear report that lists each finding, its risk level (high, medium or low), the root cause, our recommendation, and the person and date agreed for fixing it. We also walk you through it in a meeting.
Is our business information kept confidential?
Yes. Everything we see during the audit is treated as strictly confidential and used only for the audit.
Do you provide internal audit services outside Chennai?
Yes. Along with Chennai, we work with clients in Bangalore, Hyderabad and Qatar, and we can carry out parts of the audit remotely.