Internal Audit Services in Bangalore

Statutory audit tells the world whether your accounts are true and fair; internal audit tells you whether your processes can be trusted. It is the difference between learning about a leakage at year-end and catching it the quarter it happens. Krishna & Associates runs technology-assisted internal audits for private companies, manufacturers and service businesses across Bangalore, built on a framework we developed in-house.

What Internal Audit Covers

Our scope is risk-based rather than tick-box. A typical engagement covers process review across the purchase and sales cycles, testing of internal controls, reconciliation of GST and TDS to the books, verification of statutory dues, and a review of compliance with applicable laws. The emphasis is on the areas where money or compliance is most likely to slip.

Applicability under Section 138

Internal audit is a statutory requirement under Section 138 of the Companies Act 2013 read with Rule 13 of the Companies (Accounts) Rules 2014. It applies to every listed company; to unlisted public companies meeting any of the thresholds of ₹50 crore paid-up capital, ₹200 crore turnover, ₹100 crore borrowings or ₹25 crore deposits; and to private companies with turnover of ₹200 crore or more or borrowings of ₹100 crore or more. Businesses below these limits frequently commission internal audit voluntarily because the discipline pays for itself. Under Rule 13 the internal auditor may be a chartered accountant, a cost accountant, or another professional decided by the Board, and need not be the statutory auditor — a separation that keeps the assurance genuinely independent.

Our 45-Check Framework

We work to a structured framework of 45 checks, built in-house and supported by Python automation. Because the tooling reads the full transaction population rather than a sample, exceptions — duplicate payments, out-of-policy expenses, gaps in voucher sequences, unreconciled ledgers — surface that a manual sample would miss. The framework is mapped to the risks that matter for your sector, so a manufacturer's stock and purchase cycle gets the depth it needs while a services business gets sharper focus on billing, collections and statutory dues.

Tally Data Extraction and Reconciliation

Most of our clients run TallyPrime. We extract data directly from Tally and reconcile it against bank statements, GST returns and TDS records inside a controlled environment, so the audit is both thorough and privacy-respecting.

Sample Areas We Test

• Purchase cycle — vendor master, three-way matching, approval limits
• Sales cycle — pricing, credit control, revenue recognition
• Expense controls — policy compliance, supporting documentation
• Cash handling — custody, reconciliation, segregation of duties
• Statutory dues — GST, TDS, PF, ESI and professional tax timeliness
• Payroll — accuracy of computation and statutory deductions

The Deliverable

You receive an internal audit report that lists each finding with a severity rating and a practical management action plan — not a generic checklist. Where a finding touches tax compliance, we can act on it directly through our GST and TDS practices, and the work dovetails neatly with the year-end tax audit. Explore our full services to see how these fit together.