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| Process Audit and IT Audit |
About Client
- Client is a company with diversified business, multi SBU company with its shares listed in leading stock exchanges
in India. There was a need to review the Internal Controls and scientifically comment on the risk profile of the organization.
As a fast growing company, the Board felt the need for streamlining its operations and for an effective internal control system
in various SBUs and adopt the best practices.
- With different product line in its portfolio, there was a need to customize the audit approach based on the requirements
of each such product line.
- The management also wanted us to comment on the performance of the SBU in comparison to its peers within the company and
in the general industry.
- To perform a comprehensive review of their in-house developed software application in VB/VB.Net on MS SQL Server before
implementing across all the locations
Our Scope - Process Auditing
- Conduct a Process Based Internal Audit of the process in the organization coupled with risk assessment.
- Conduct review of compliance with statutory norms & internal policy and verify the accuracy of transaction reflected
in accounting records on a monthly basis for selected key areas.
- Regular review of the implementation of various actions initiated out of the audit.
- Identify and review the key performance indicators.
Our Scope - IT Auditing
- Assessed the capability of the software in meeting the business requirements of Client
- Reviewed the effectiveness of the application controls built into the application modules
- The scope includes the coverage of the business process carried out at the 5 geographic locations of the company
and across all the business units
Benefits for Client - Process Auditing
- Scientific measurement of risk and exposure thereby fulfilling governance reporting requirement of the board.
The risk exposure levels reduced year on year.
- Assurance towards adoption of company policy and procedure.
- Statutory non compliance identified.
- With a humble start the organization is above their peers in various operational parameters. Value addition
in terms of cost reduction to the tune of Rs. 1 Crore and Rs. 2.5 Crores in the past two years.
- Regular monitoring has helped the organization in taking corrective action for deviation identified at a very
early stage. Few example of the internal control issues identified and corrected as below.
- Seed cane supplied to the Ryots more than the required Qty and huge difference between estimated cane yield Vs
Actual cane supply leading possibility of cane seed/ cane unauthorized cane diversion.
- Analysed and recommended planning & deployment of Casual Workers thereby decreasing their engagement. Unauthorised
payment of wages was also identified and curtailed.
- Physical Verification of Assets was carried out to determine the physical existence, control over their movement
and condition of the asset for valuation purpose. Unutilized asset to the extent of Rs. 1.08 crores was identified
and appropriate action taken.
Benefits for Client - IT Auditing
- Clear understanding of the gaps that were not addressed in the application with prioritization based on the criticality
of the requirements to facilitate development / fine-tuning and implementation
- Application controls that were not adequately addressed in the application with the ranking of their risk levels
to prioritize the same.
- Necessary IT infrastructure requirements were recommended to implement the application across all the location
with centralized server setup.
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