Internal & Operational Audits

Our firm has specialised for the last 35 years in risk based Internal & Operational Audits of large International and Indian Corporates in India and abroad. Mahajan & Aibara follows both co-sourced (partnering with the existing Internal Audit departments) and out-sourced models for Internal audits.

Five of our partners are independently responsible for Internal Audit assignments which have been an area of core competence for the firm since last 35 years.

Several blue chip corporates have outsourced their internal & operational audits to M & A in India and abroad. The main thrust of these assignments is towards improved competitive strength through a positive & independent appraisal of risks, business processes & internal controls. Our teams bring to these assignments insights & knowledge of best practices gained from our experience of working with leading international & Indian corporates in India & abroad.

M & A Methodology

  1. Identification, evaluation & prioritization of key business & process risks.
  2. Listing of mitigating internal controls against each risk.
  3. Mapping of business processes and evaluation of Internal controls.
  4. Testing of Internal controls for effectiveness using 'walk-thru' tests.
  5. Recommending improvements in internal controls, business processes & financial reporting.
  6. Benchmarking with best practices.
  7. Review for compliance with corporate policies, statutory & regulatory environment.
  8. Review of IT systems.
  9. Review of effectiveness of managerial supervision.

Tools, Technology & Knowledge Database

We have made significant investments in development of various tools, technologies & knowledge database to ensure delivery of quality services to our clients and assist in benchmarking against best practices. We also have special in-house developed tools for conducting trend analysis, data-analytics & data mining and continuous auditing.

For our risk based internal audits, we use state of the art data analytic tools and specially designed control rating indices for evaluating and benchmarking corporate governance processes and overall control environment.

Corporate Governance

  1. Assisting companies to set up an effective Vigil Mechanism / Whistle-Blower policy which provides for:
    • Direct access to Chairperson of the Audit Committee
    • Adequate safeguards against victimisation
    • Disclosure on company website and communication of Vigil Mechanism within the organisation
  2. Devising proper systems to ensure compliance with the provisions of all applicable laws and testing such systems to ensure that they are operating effectively.
  3. Preparation of Audit Committee Charter.
  4. Compliance with clause 49 of the listing agreement including Audit Committee requirements.
  5. Mapping, review & testing of internal controls and processes for purposes of supporting Board certifications (including preparation of relevant documentation).
  6. Use of control rating indices for evaluating and benchmarking corporate governance processes and overall internal control environment.
  7. Preparation of Business Code of Conduct and Delegation of Financial Powers Document.

Enterprise Risk Management Framework

Preparation of a Risk Management Framework (risk identification, prioritization, minimization and control strategies).
We help Corporates identify key risks facing their businesses and develop strategies to manage these risks. Risks can be strategic, operational, financial, reporting or legal and regulatory.
For this purpose Mahajan & Aibara has built up :

  • A comprehensive inventory of risks by process and industry segments.
  • A repository of desired controls by each risk.
  • Extensive Knowledge – Bank of major issues and best practices.

Mahajan & Aibara has carried out risk management studies for a numbers of large international & Indian companies.

Design Of Business Processes & Systems Architecture

We help businesses design their key business processes (standard operating procedures) & review existing practices to introduce “best practices”, help operations become more efficient, speed up work flows and improve MIS & customer satisfaction levels.

Examples of areas covered are Inventory Management, Finance & Accounts, Buying Practices, Costing, Budgeting & MIS, Logistics & Distribution, Sales & Despatches, Receiving, Project Management & Capital Expenditure, Retail Chains, Credit Control, Outsourcing, Imports & Exports, Branch Networks, and Delegation of Financial Powers etc.
Our role covers:

  1. Design, mapping, documentation & evaluation of business processes for transition from 'as-is' to standard 'to-be' future state design.
  2. Design of roles & responsibilities, key result areas and control check-points.
  3. Preparation of service offerings and service level agreements.
  4. Preparing system readiness testing & business simulation prior to 'go-live'.
  5. Highlighting gaps & exceptions and recommending required improvements.