Internal Audit
According to the standard defined by the Institute of Chartered Accountants of India, internal audit is one of the risk management functions, which is independent and performed to help the management of a company. It is performed at the command of the management and different from statutory and external audit. The process of internal audit helps in identifying the errors and gaps that are required for policy implementation and the procedures of a company in managing the everyday affairs, such as risk, finance, HR, and statutory compliances. The procedure is also responsible for the critical appreciation of the internal controls and facilitates in the implementation of the highest industry practices to meet the business objectives.
When do companies require internal audit?
- The process of internal audit is mandatory when the size of the business increases and it becomes complicated.
- Use of information technology on a large scale.
- Following the statutory requirements.
- Internal control for managing the risks
- Reinforcing high level of corporate governance and following the best industry practices.
Primary features of internal audit
The primary focus on internal audit is to ensure a strong system of internal control to curb the risk of accidental and intentional mistakes and lapses. It also helps in protecting the assets of a company, proper division of author over the primary control areas and complying with the internal policies of operation and provides the necessary guidelines. The following are the primary features of internal audit.
Key functions of the internal auditor
The internal auditor has a primary role to play in an organisation and the following summarises them appropriately.
- Reviewing the operations, policies, and procedures and assisting the management in the best procedures and policies.
- Certification of risks that are managed with the acceptable limits as stated by the Board of Directors.
- Examination and evaluation of uninterrupted effectiveness of the internal control system and making necessary suggestions for improving the internal control mechanism.
- Assisting the management in the identification of fraud and their prevention.
The scope of audit refers to internal controls and is performed with emphasis on controlling the cost. The primary purpose of the internal audit system is ensuring no lapses, errors, or intentional mistakes. According to the policies and procedures of SEBI, the statutory clause 49 of the agreement requires the listed entity to make sure that
- Implementation of internal audit function
- Reporting the weaknesses found in the internal controls.
- Certification and taking of accountability by the CFO, CEO to the Board of Directors to make the internal control effective.
- It should also ensure that the authorities take the necessary steps to improve the deficiencies of internal control to the audit committee and the auditors.
SPD Consulting Pvt Ltd provides internal audit services to companies and has an excellent track record for following the best industry standards.
Internal Financial Controls over Financial Reporting
The Internal Financial Control over Financial Reporting or ICFR relates to the procedures within the company that are specifically designed to ensure compliance with the policies of the company., especially those that affect the compliance of the company with the regulations and laws ad those impacting the financial reporting of the company.
It is a process, which is designed by and under the supervision of the principal executive of the company and the chief financial officer, or people performing similar functions, and brought into effect by the board of directors, management, along with other company personnel to provide reasonable assurance, related to the reliance of financial reporting and preparation of financial statements for external requirements according to the general accounting principles. Therefore, the following are the procedures, and policies of the IFCFR of companies.
- The policies and procedures should cater to records maintenance in reasonable details in a fair and accurate manner, thereby reflecting the dispositions and transactions of the assets of the company.
- Provision of assurance that the recorded transactions as necessary should facilitate permit preparation of the entire financial statements in line with the general accounting principles.
- Moreover, it ensures that the expense and the receipts of the company should be made according to the authorisation of the company management and the directors.
- Provide enough assurance about the prevention or detection of unauthentic acquisition and disposition of the company asset that can materially impact the financial statements.
The Internal Financial Control over Financial Reporting also notifies that reporting on ICFR by the auditors apply to the unlisted and listed companies, including one person and small companies. Moreover, the auditors should report on ICFR, in lieu of consolidated and single financial statements. However, the auditors of foreign components of an Indian parent company need not require reporting on ICFR. Both the auditors and corporate in India needs to understand the concept of integrated audit, which encompasses the audit of ICFR over financial statements and financial reporting. Although the objectives of the audit of financial statements and ICFR are different, the auditors need to plan and perform the work in such a manner so that it helps in achieving the objectives of integrated and standalone audit properly. In such audits, the auditors should fulfill the following.
- Acquire adequate evidence to support the opinion of the auditor on the ICFR in the year end.
- Obtain enough evidence to support the auditor’s control risk assessments for the requirements of the audit related to the audit of the financial statements.
- When it comes to the indication of material weakness, the auditor needs to figure out the fraud on the part of senior management, whether it is material or not.
- Mistakes in the previously issues financial statements and the present financial statements.
- The auditors need to identify the material misstatements of financial statements that may not have been detected by IFC over financial reporting.
SPD Consulting Pvt Ltd has expertise of performing the procedures if ICFR.
ERP Advisory
At SPD Consulting Pvt Ltd, we provide recommendation of software solution and methods of implementation to support the clients when it comes to choosing and implementing the enterprise software package. Our team of experts supports the implementation of enterprise application, provides strategies for IT, upgrades of the existing versions, quality assurance, and services related to project management related to the IT projects of the clients.
Selection of system and planning the implementation
We not only develop requirements for systems but conduct a thorough analysis of the capabilities of the systems, vendors, and the market for implementation of the services. The experts of our team assess the resources that are necessary for the expenses related to the implementation of projects, develop strategies, and determine the scope of implementation, development of strategies, and determine the scope of integration and implementation followed by resource planning and scheduling.
Managing the implementation of systems and projects
The following are the services we provide to the team of experts when it comes to ERP advisory services.
- Handling the projects team
- Recommending and backing the projects solutions and realisation of project solutions in the systems.
- Controlling and planning of projects
- Development and support of the alternations taking place in the company
- Establishment of efficient project communication
- Managing the quality of work
We help in reducing the risk by ensuring that our clients choose the right software for optimization of processes and transforming people successfully to the new and improved methods of work. During the selection process, we find out enterprise resource planning or ERP solutions that can facilitate in automating the processes that allows you gain a competitive edge.
Throughput the process of implementation and selection of the ERP package, we help companies to set practical expectations so that the project sticks to the timeframe and budget, resulting in genuine business benefits. For choosing the right ERP solution, we take time to assess the requirements of the organisation and customise our offerings, based on the goals and culture. Our experience range through a broad spectrum and we help our clients to choose the best ERP solutions, based on their requirements.
Standard Operating Procedures
Requirements of SOP
The following are the reasons why companies need to go through SOP manuals.
- It helps in bringing clarity on the ways in which organisations function along with its processes and departments.
- Providing opportunities for reviewing of internal control methods and figuring out their gaps.
- Creates opportunities for setting benchmarks against the best and prevailing practices in the industry.
- Creation and strengthening the IT and ERP systems in the organisation.
- Standardisation of procedures and systems, MIS, and documentation across the organisation.
- Facilitating and making the corporate governance more effective to increase the contribution of the management.
- Provides a suitable tool for management control.
Assistance from us
We evaluate the operations of the clients to understand their processes and functioning and identify the gaps to recommend the best solutions to make the process and related controls formal. We offer the following when it comes to SOP.
- Over viewing the process of business cycle.
- Structuring the organisations of each department within the company
- Practices along with the internal and external policies that the companies should adopt.
- Evaluating the functions and roles of each department.
- The internal control procedures and processes that the departments of companies should follow.
- Requirements of MIS.
- Preparing the checklist of basic statutory compliance.
- Forms that various departments within the organisation should use.
At SPD Consulting Pvt Ltd, we provide the following assistance in SOP.
- We hold discussion with the team of management and the functional heads.
- Focus on the existing procedures and policies within the organisation.
- Analyse the gaps and suggest suitable recommendations.
- Carry out discussions with the management and the functional teams about the changed processes and controls.
- Coordinate with the clients regularly about the progress and movement of the project.
- Prepare and submission of the SOP drafts after discussing with the management.
- Submit the final version of the SOP and providing the support needed for implementing the procedures.
- Follow-up the implementation
Why choose us
SPD Consulting Pvt Ltd is a Kolkata based and among the top consulting and accounting companies, which is also a leader in tax and consultation services. We have devoted and committed teams having the necessary expertise and skills to provide the necessary SOP solutions. Our extensive experience in advisory services, taxation, and accounting applies to various industry segments.
Real Estate (Regulation and Development Act)
The Real Estate (Regulation and Development Act) or RERA of 2016 came into effect in 2017 and includes whopping real estate agents who are registered under this act. According to this act, every developer and builder needs to conform to its policies and procedures strictly in different parts of India. Even though the act is not traditional, it permits every project of real estate to be registered with the state offices of RERA by the promoters within three months of the beginning of this act. The act was brought into effect to safeguard the interest of the homebuyers and enhance investment in real estate. Certain provisions of the act are listed as follows.
- Completion and delivery of projects to buyers within the timeframe
- Preparation of the project, layout, approval of government, status of the land title, and availability of sub-contractors, changes in the project, or consent of two-thirds of the allottees can bring more transparency and responsibility in the sector of real estate.
Solutions of RERA
Before the advent of RERA, the real estate developers had no strict rules or bindings to follow as far as the construction and the delivery of the projects is concerned. Typically, delays in real estate projects are witnessed often, which affects the finance of the buyer. To avoid overburdening the buyer, RERA comes to help. Due to this act, the homebuyers prefer to commence litigation to resolve the disputes under the regulations of RERA. It is a result-driven act that helps in providing a constructive judgement against the erroneous builders and developers.
RERA has been enacted and implemented in over twenty-eight states and Union Territories and non-compliance will attract heavy penalties.
SPD Consulting Pvt Ltd is one of the few companies that offer advisory services to builders and real estate agents about the tenets of RERA and the impact it has on their businesses for non-compliance. It is our area of expertise and we have professionals leading a team of experts with a wide range of experience in the real estate sector. Following are the list of our services.
- Application of RERA and its significance
- Assisting in RERA registration for real estate agent
- Registering real estate projects under RERA
- Registration of promoters
- Compliance to RERA along with remittance and withdrawal
- Grievances related to RERA and other related issues
Standard Operating Procedure
The team of experts in SPD Consulting Pvt Ltd provide customised solutions for standard operating procedures that resonated with your organisation. The set of procedures define the reporting structures and authorities at various levels for every element within the organisation. The SOP procedures evaluate the present capability of the organisation and its future preferences based on the objectives of the company for expansion. With a set of instructions of SOP that are reasonably documented, the implementation occurs right from the structuring of the organisation, departments, and defines the KPI’s and procedures. Eventually, the procedures facilitate in seamless functioning of companies and assist their functioning. The following are the services offered as part of the organisational function.
Ensures the efficiency of supply chain
In the present scenario, accessibility of companies and the scope of widening the customer base include various channels. According to the current reach of the company and the strategies of growth, the team mastering the SOP supply and chain helps in strengthening the planning, sourcing, ad procurement of supply chain, optimisation of inventory, management of warehouse, distribution of logistics and transportation.
Controlling the inventory
The turnover ratio of the inventory allows organisations to make significant profits. The SOP development team of our company helps in the development of prospective processes which helps in reducing the possibility of leakage in the inventory channel. We follow SOP procedures that work on the positive and negative ratios of the inventory.
Strategy of merchandising
We design SOP procedures for improvising the strategy of merchandising throughput the year with the help of the latest technology. Our services help in planning the merchandise and space, deciding the analytics of merchandising, promotions, assortment, pricing, and management of items to ensure that every aspects is integrated seamlessly based on real time data.
Facilitating multi-channels
To speed up the operations of business at different levels from the web world, catalogue, mobile, along with brick and mortar store, we design SOP’s that are not only effectively designed, but implemented properly.
Managing human resources
The SOP development team of SPD ensures that every resource should stay properly informed about the reporting structures, parameters of appraisal, KPI culture, and hierarchy of the organisation.
Labour laws
Under the Indian Constitution, labour is one of those subjects, where the state and the central government need to enact legislations. Therefore, the state and the central government enact labour laws in lieu of the employment and relations issues. Every business requires obtaining a sort of permission to operate in India legally.
However, the permission they should obtain depends on the type of the business, its location, and whether it falls under the jurisdiction of state and central government. SPD Consulting Pvt Ltd is an expert consultant specialising in diversified fields and assist you in identifying the registration and license or permission that a business requires to seek for operating in India. The following are the scope of our services.
- Processing the monthly salaries or wages and benefits of employees along with the settlement of reimbursement.
- Generation of statutory challan under ESI, LWF, PT, and PF on monthly, quarterly, half-yearly or annual basis.
- Generation of statutory compliance reports and management aid reports
- Consultation services for restructuring the CTC.
- Providing Form 16 to every employee.
- Full and final settlement of employees
Solutions for varied compliances
SPD Consulting Pvt Ltd also offers an array of solutions for diversified compliances.
- Compliance services under Factories Act
- Services under ESIC and PF Act
- Providing approval for factory building plan or license
- Compliance under the labour laws
- Compliances under shop and commercial establishment act
- Payroll processing services
- Providing license under labour laws
- Compliance to notice board
- Obtaining permission of exemption under labour laws
- Handling the inspections of various departments
- Establishing relationships with various government departments and authorities.
SPD Consulting Pvt Ltd specialises in providing consultancy services in labour law and allows companies to grow seamlessly by removing the labour issues. Our aim is to cater to the industry-specific requirements of labour law applicable to various jurisdictions. We are in this business with experts who provide uninterrupted assistance to foreign and multi-national companies who are planning to set their base in India.
We also provide them the necessary support to these companies so that they can comply with the formalities of licensing and registration that is required under the Indian labour laws. From consultancy and structuring of labour laws to labour grievance redressal, drafting the customised code of ethics of employees, and the employee documents, the repertoire of services at our end are meant to assist companies to comply with the labour laws fully.
Forensic Audit
Fraud is one of the biggest risks in Indian businesses and such incidents hamper the growth and reputation of businesses. In the perspective of strict legal network and compliance with the regulatory authorities, the companies need to function independently and professionally. It is the intervention of a team of forensic auditors that such irregularities are likely to come to an end. There are different ways in which such fraudulent activities can unfold, such as financial reporting, misappropriation of funds and assets, lack of strength on business relationships, dispute resolution, corruption and bribery, and infringement of rights. SPD Consulting Pvt Ltd is a leader in the field of forensic audit due to the following reasons.
- Our work profile consists of a huge number of investigations and we have handled several high-profile cases.
- We have a team of forensic professionals belonging to varied backgrounds.
- We implement forensic technology to facilitate the investigations.
- Our team has the competence to perform large-scale background checks.
- We cater to different sectors and offer services to national and multi-national firms.
We evaluate the system of internal controls of the clients to identify the loopholes and try to protect the company assets to detect whether anyone has tampered with the control of the company for personal gains. Our team has formal training and knowledge of a wide range of methodologies to investigate versatile situations and assists them with solutions that pertain to the situation. Furthermore, we also suggest remedies to avoid the occurrence of such situations in the future.
The team of our company can also help you with the development of a risk management system that is based on the techniques of business intelligence that can help an organisation to avoid those situations where its brand and reputation is likely to stay at stake. Formulation of effective policies and its circulation increase risk awareness among the stakeholders and one of the most effective steps for organisations to remove the impediment in the path of its business objectives.