ROLE OF INTERNAL AUDIT IN STRENGTHENING CORPORATE GOVERNANCE Internal Audit Internal Audit involves critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity, including the entity’s strategic risk management and internal control system. Corporate Governance Governance is a key concept in Internal Audit and SIA 140 issued by ICAI, seeks to clarify both, the concept and the responsibility of the Internal Auditor,
Tag: Audit
Indirect Tax – December 2022
GST Calendar –Compliances for the month of December’2022. Nature of Compliances Due Date GSTR-7 (Tax Deducted at Source ‘TDS’) January 10, 2022 GSTR-8 (Tax Collected at Source ‘TCS’) January 10, 2022 GSTR-1 January 11, 2022 IFF- Invoice furnishing facility (Availing QRMP) January 13, 2022 GSTR-6 Input Service Distributor January 13, 2022 GSTR-2B (Auto Generated Statement) January 14, 2022 GSTR-3B January 20, 2022 GSTR-5 (Non-Resident Taxable Person) January 20, 2022 GSTR-5A (OIDAR Service Provider) January 20, 2022 PMT-06 (who have opted
Statutory Audit – December 2022
Environmental, Social and Governance (ESG) As Sustainable development and Climate change movements are getting momentum along with the push from investors. It is imperative for companies to report their sustainability performance in order to maintain transparency with stakeholders. Global sustainable investments are growing rapidly and reached $35 trillion or 36% of the total assets under management in 2020. In India, almost all sustainable investment products have been launched in the last two years, reflecting increasing interest and potential. Evolution of
Internal Audit – December 2022
Special Economic Zone and Export Oriented Units Introduction Special Economic Zone A special economic zone (SEZ) is an area in a country that is subject to different economic regulations than other regions within the same country. The SEZ economic regulations tend to be conducive to—and attract foreign direct investment (FDI). Special Economic Zones are typically created in order to facilitate rapid economic growth by deploying investment and creating employment. This economic growth is accomplished by providing various economic advantages such as tax incentives. Exported Oriented Zone
Internal Audit Alert – October 2022
INTERNAL AUDIT Internal Audit is an independent appraisal activity within an organization for the review of, and to improve, the accounting, financial and other operations as basis for protective and constructive service to the management. IMPORTANCE Internal Audit has great importance in itself as an influential function within a company which helps in improving the functions and operations of the company. Its importance was increased during the year 2020, when the global COVID-19 pandemic affected poorly the World Economy. And
Use of Artificial Intelligence in Audit
Background Auditing can be transformed with machine learning leading to increased productivity and accuracy. Historically, audit is done on sample basis to identify risks. This approach does not take into account the total information available and relies mainly on manual processing. Audit firms can automatically process large volumes of data to identify anomalies and high risk transactions which can be further analyzed by humans. How does AI impact the audit procedure? Auditors can use AI to: Automate Manual Tasks of auditors
Role of Internal Audit in Blockchain Adoption
Role and responsibilities of internal audit function are likely to expand in important ways with increasing acceptance of blockchain applications in organizations. Internal audit managers need to adopt appropriate methods to validate the functioning of blockchain networks and whether ledger versions are updating properly at all ends with appropriate security consistently.Performing internal audit in blockchain environment will require a good technological expertise of internal auditor.The internal auditor may find challenged to adapt quickly – but seeing the opportunity to take
Blockchain Technology and Audit
A blockchain is a digital ledger which is created for capturing transactions conducted among various parties in a network. It is a Distributed Ledger based on Internet which includes all transactions since its creation. All participants (i.e., individuals or businesses) who using the shared database are “nodes” connected to the blockchain, each maintaining an identical copy of the ledger. Every entry into a blockchain is a transaction that represents an exchange of value between participants (i.e., a digital asset that
Ind AS 32: Accounting for offsetting of financial assets and financial liabilities
Facts A Company is engaged in the manufacturing of Defense Sector. Some of products manufactured by Company are on Special Order. The querist has stated that as the some products are made only against specific orders, the company receives advances from various customers on agreed percentages of sale value of an order for supply of goods and services. While raising the sale invoice on supply of ordered goods or services, advances to the extent of proportionate value of invoice
CARO 2020: MCA defers immediate applicability; now applicable from F.Y. 2021-22
The Ministry of Corporate Affairs (MCA) has deferred the applicability of the notified the Companies (Auditor’s Report) Order (CARO) 2020, till 1st April, 2021. The notification seeks to amend the Companies (Auditor’s Report) Order, 2020. In the Companies (Auditor’s Report) Order, 2020, in paragraph 2, for the figures, letters and word “1st April, 2020”, the figures, letters and word “1st April, 2021” shall be substituted. The Companies (Auditor’s Report) Order, 2020 is applicable for all statutory audits commencing on or