This handbook can be used as a primer on Internal Audit. Internal Audit is now a key
element of organizational governance and plays a critical role in protecting and
enhancing organizational value.
In February 2000, SEBI introduced Clause 49 for listed companies which amongst
others established the Audit Committee and laid down its relationship with the
internal audit function. The Companies Act, 2013, now mandatorily requires the
appointment of an Internal Auditor by the Board for specified companies. This
provision has expanded the requirement to cover a much larger number of other
public and private companies.
The Handbook on Internal Audit covers the fundamentals on internal audit and
discusses the internal audit process, tools and techniques used by internal auditors
and the statutory provisions relating to internal audit. It also includes guidance on the
role of internal audit in areas such as governance, enterprise risk management,
internal financial controls and fraud. The handbook provides functional
understanding of the subject and is an effective tool for directors even with no
background of audit.
We believe that this handbook will benefit the directors and the board for them to
understand the practice of internal auditing and how it can play an effective role in an
organization. It should also assist to discharge their duties and responsibilities.