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PROJECT REPORT
ON
University of Pune
PDEA’S
Institute Of Technical Education, Research and Management,
Akurdi, Pune-411035
2018-2020
DECLARATION
Date:-
Place:- Akurdi,Pune
Executive summary
The general definition of an audit is an evaluation of person
organization system, process, enterprise, project or product. The term
most commonly refers to audits in accounting, internal auditing and
government auditing, but similar concepts also exist in project
management, quality management. Water management and energy
conservation. Auditing is defined as a systematic and independent
examination of data statements, records, operations and performances
(financial or otherwise) of an enterprise for a stated purpose. In any
auditing the auditor perceives and recognizes the propositions before
him for examination collects evidence, evaluates the same and on this
basis formulates his judgment which is communicated through his
audit report. the Internal Auditing profession evolved steadily with
the progress of management science after World War II It is
conceptually similar in many ways to financial auditing by public
accounting Improsys, quality assurance and banking compliance
activities While some of the audit technique underlying internal
auditing is derived from management consulting and public
accounting professions, the theory of internal auditing was conceived
primarily by Lawrence Sawyer (1911-2002), often referred to as "the
father of modern internal auditing" and the current philosophy, theory
and practice of modern internal auditing as defined by the
International Professional Practices Framework (IPPF) of the Institute
of Internal Auditors owes much to Sawyer's vision Traditionally,
internal auditing involved measuring compliance with the entity's
policies and procedures. However, internal auditors are not
responsible for the execution of company activities, they advise
management and the Board of Directors (or similar oversight body)
regarding how to better execute their responsibilities As a result of
their broad scope of involvement internal auditors may have a variety
of higher educational and professional backgrounds. Developments in
internal auditing have moved away from “compliance” which is a
function of management control, towards Risk Based Internal
Auditing (RBIA) which results in monitoring and evaluation of the
risk based control framework to manage enterprise risk.
PRELIMINARY PAGES
Sr.no Particulars Page No.
1. Title of Project
2 Institute Certificate I
3 Company Certificate II
4. Declaration III
5. Acknowledgement IV
6. Executive Summary V
INDEX
Sr.no TITLE
PAGE NO
1 Introduction 1-2
6 Research Methodology 21
9 Limitations 34
10 Suggestion or Recommendations 35
11 Conclusion 36
12 Bibliography 37
13 Annexure 38-40
INTRODUCTION
The word audit is derived from the Latin word “audire” which means
to hear. It is an important tool of management. It is concerned with
making an analytical and critical analysis of the books of accounts,
checking and verification of evidence in support of entries appearing
in the books of accounts, and ascertaining the authenticity of the
financial statements. It is also concerned with the examination of
accounting data to determine the extent of an audit examination is too
made on the basis of evidential document such as invoice, money
receipts and other records by the authorized representative of the
client.
Internal auditing is an independent, objective assurance and
consulting activity designed to add value improve an organization’s
operations. It helps an organization accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and improve
the effectiveness of risk management, control and governance
processes. Internal auditing is a catalyst for improving an
organization's effectiveness and efficiency by providing insight and
recommendations based on analysis and assessment of data and
business processes. With commitment to integrity and accountability,
internal auditing provides value to governing bodies and senior
management as an objective source of independent advice.
Professionals called internal auditors are employed by organizations
to perform the internal auditing activity.
Internal Audit is not a discipline of Accountancy, External Audit is
related to Accountancy, but Internal Audit is an entirely separate
discipline more closely related to Enterprise Risk Management.
Internal Audit does, of course, cover financial risk amongst its
portfolio, but this is one very minor element of the role. Significant
misunderstandings in this area have resulted in many organizations
recruiting accountants with external audit experience to staff a
internal audit function; this is usually detrimental to the quality and
completeness of assurance provided to the Non- Executive Directors
/Board, and may, in part, have contributed to corporate failures are
key operational risks that were not directly related to financial
statements remained unidentified and/or managed by the Executive
Management.
When IIA and ACCA signed the Global Memorandum of
Understanding, IIA President David A Richards said, “The IIA and
ACCA are both long-standing, highly respected professional
associations ,each with members from all around the world. Although
we represent two distinctly different professions, our codes of ethics
and perspectives on enhanced professionalism ongoing education, and
quantifiable research mirror one another.”
The scope of internal auditing within an organization is broad and
may involve topics such as the efficacy of operations, the reliability of
financial reporting, deterring and investigating fraud, safeguarding
assets, and compliance with laws and regulations.
Traditionally, internal auditing involved measuring compliance with
the entity's policies and procedures. However, internal auditors are not
responsible for the execution of company activities, they advise
management and the Board of Directors (or similar oversight body)
regarding how to better execute the it responsibilities. As a result of
their broad scope of involvement, internal auditors may have a variety
of higher educational and professional backgrounds Developments in
internal auditing have moved away from “compliance” which is a
function of management control, towards Risk Based Internal
Auditing (RBIA) which results in monitoring and evaluation of the
risk based control framework to manage enterprise risk The modern
approach seeks to ensure that key risks are identified, a risk appetite is
defined. and controls are instigated in a fit for purpose way to manage
risk according to The risk appetite of the organization.
Publicly-traded corporations typically have an internal auditing
department, led by a Chief Audit Executive CAE who generally
reports to the Audit Committee of the Board of Directors with
administrative reporting to the Chief Executive Officer.
The internal auditor audits the accounts and other relevant records
daily, regularly or on periodical basis to accomplish the following
requirements :-
Internal audit may be conducted to ascertain whether all rules
regulations, policies, procedures and principles have been followed by
the company or not.
Name: IMPROSYS
Address: Jai Ganesh Vision Complex ,A- 29 Akurdi pune.
Business Status: - Active
Owner: Mr. Laxmikant Kathare
Total No of Employees: 50-60
Project Consultancy
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Developing Framework
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Providing Debugging and Optimization services
Conducting Support Training
Conducting Customer Training
Increase Customer satisfaction.
Increase utilization of machines
Improve performance of employees.
Improve level of quality standards in all functional areas.
MISSION-
INDIVIDUALS
Since our services are human resource oriented, we need to work with
a proper plan to get the best. There are prescribed set of procedures
that we follow right from training people to delivering the services
and their further evaluation and improvements. Training and
development of the employees is well taken care of to enhance
employee skills.
Some features which attracts students and companies are :
Qualiy Policy
Environment factors:
2.To understand the relevance & scope of internal Audit within the
organization.
Analysis Technique:
The data collected from the respondents were analyzed using standard
statistical methods and techniques. Pie charts and Bar diagrams are
used to reach at the conclusion Findings were made on the basis of
analysis Recommendations were made on the basis of findings drawn
from various data collected.
Sample Questions: 15
DATA ANALYSIS AND INTERPRETATION
38% Yes
50%
No
May be
8% Total
4%
Percentage of Respondents
INTERPRETATION
The above table and graph shows the responses towards –How
Internal Audit meets expectations, the 76% respondents said that IA
Meet Expectations Only 16% said that IA Does Not Meet
Expectations The rest of 8% did not comment they were neutral.
Thus, the internal audit meets the expectations of the organization.
Q2. To what extent do you believe that the work of internal Audit improves
the overall internal control of the organization IMPROSYS?
18%
Strongly Agree
50% Agree
21%
Disagree
Strongly Disagree
4% Neutral
9%
Total
Percentage of Respondents
INTERPRETATION
The above table and graphs shows that responses towards –How
Internal Audit improves the overall internal control of the
organization 36% respondent strongly agree, 42% respondent agree,
4% respondent disagree, 0% respondent were strongly disagreeing,
and 18% respondent were neutral. Thus overall it can be interpreted
that internal audit improves the overall internal control of the
organization.
Q3. Do you believe that the work of Internal Audit helps in
identifying and improving the overall risk of the organization
(IMPROSYS) ?
12%
10% Agree
50% 8% Strongly Agree
Disagree
Strongly Disagree
16%
Neutral
4%
Total
Percentage of Respondents
INTERPRETATION
The above table and graphs shows responses to the question Internal
Audit helps in identifying and improving the overall risk of the
organization. 20% respondents were strongly Agree, 24% respondents
Agreed with the above statement. 16% respondents were Disagree,
and 32% respondents were Strongly Disagree, 8% respondents
remain neutral. Thus, Internal Audit does not help in identifying &
improving the overall risk of the organization.
Q4. Do you feel that Audit report issued by Internal Audit department
help the department to improve the work of department?
10%
Strongly Agree
20%
50% Agree
Disagree
8%
Strongly Disagree
9% Neutral
3%
Total
Percentage of Respondents
INTERPRETATION
The above table and graphs shows the percentage of respondents.
Only 20% respondent strongly agreed, 40% respondent agreed, 16%
respondent disagreed, 18% respondent strongly disagreed, & the
statement 6% respondents remain s neutral. Thus, the respondents
were agreed that Audit Report issued by internal audit department
helps the department to improve the work of the department.
Q5. How do you rate the quality of Internal Audit report issued by
Internal Audit Department?
10%
10%
Excellent
50% Good
20% Average
Poor
6% No Comment
4%
Total
Quality Of IA Report
INTERPRETATION
The above table and graph the Quality Of Internal Audit Report. 20%
respondents were strongly agreed, 20% respondents were agreed,
40% respondents were disagreed, 4% respondents were strongly
disagreed, 16% remain neutral. Thus, aggregate 40% respondents
were agreed that Internal audit report issued by internal audit
department.
Q6. Do you think that Internal Audit have the right reporting structure?
8%
20% Excellent
50% Good
Average
9%
Poor
5%
No Comment
8%
Total
Percentage of Respondent
INTERPRETATION
The above table and graph shows the percentage of respondent. 26%
responses were excellent, 36% were good, 10% were average, 12%
were poor, 16% were neutral. Hence, from this interpretation it can be
concluded that aggregate responses were good regarding internal
audit has the right reporting structure.
Q7.Do appreciate that audit work was efficiently performed as per
the schedule?
8%
20% Excellent
50% Good
Average
9%
Poor
5%
No Comment
8%
Total
Percentage of Respondent
INTERPRETATION
The table and graph shows the percentage of respondents. Only 16%
respondents were excellently agreeing, 40% responses were good,
18% responses were average, & 10% responses were strongly poor,
& 16% respondent remains neutral. Thus, it can be interpreted that
audit work efficiently performed as per the schedule.
Q8. Do the Auditors motivate you to improve on your performance with
their suggestions?
X No of Respondent Percentage of
Respondent
Strongly Agree 10 20%
Agree 16 32%
Disagree 11 22%
Strongly Disagree 5 10%
Neutral 8 16%
Total 50 100%
10%
16% Strongly Agree
50% Agree
11% Disagree
Strongly Disagree
5%
8% Neutral
Total
Percentage of Respondent
INTERPRETATION
The above table and graph shows whether the Auditors motivate to
improve the performance. Only 20% respondent strongly agrees that
Auditors motivate them in improving their performance. Nearly 32%
respondent agrees, 22% respondent disagree, 10% respondent were
strongly disagreeing & 16% remains neutral with the statement. So
the 52% employees agree that the internal auditors motivate to
improve the performance.
Q9. How will you judge Improsys present Internal Audit activities
towards improving the performance of the organization?
10%
11%
Excellent
50% Good
18% Average
Poor
8% Neutral
3%
Total
Percentage of Respondents
INTERPREATATION
The above table and graph shows the percentage of responses on the
relevance of internal audit activities towards improving the
performance. Only 20% of respondent response as Good, 22% said
Average, 36% response comment as Poor and Rest 16% did not
comment. Thus , it can be interpreted that Internal audit activities help
in improving the performance of the organization.
Q10. Have you ever requested specific services of the Internal Audit
function in Improsys?
26%
50%
Yes
No
24%
Total
Percentage of Respondent
INTERPRETATION
The above table and graphs shows the percentage of respondents of
the internal audit function. Nearly 52% respondents said No Only
48% respondent request specific service of Internal Audit function.
Thus, it can be interpreted that the employees have requested specific
services of the internal audit function.
OBSERAVTION AND FINDINGS
1. The above table and graph shows the response towards How
Internal Audit meets expectations, the 76 % respondents said that IA
Meet Expectations Only IA Does Not Meet Expectations The rest of
8% did not comment they were neutral Thus, the internal audit meets
the expectations of the organization.
2. The above table and graph shows the responses towards How Internal
Audit improves the overall internal control of the organization 36%
respondent strongly agree, 42% respondent agree, 4% respondent
disagree,0 % respondent were strongly disagreeing, and 18% respondent
were neutral. Thus overall can be interpreted that internal audit improves
the overall internal control of the organization.
3.The above table and graph shows responses to the question Internal
Audit helps in identifying and improving the overall risk of the
organization 20% respondents were Strongly Agree, 24% respondents
Agreed with the above statement 16% respondents were Disagree and
32% respondents were strongly Disagree, 8% respondents remain
neutral. Thus, Internal Audit does not help in identifying improving
the overall risk of the organization .
8. The above table and graph shows whether the Auditors motivate to
improve the performance Only 10% respondent strongly agrees that
Auditors motivate them in improving their performance Nearly 16%
respondent agrees, 11% respondent disagree 5% respondent were
strongly disagreeing, & 8% remains neutral with the statement So the
52% employees agree that the internal auditor motivate to improve
the performance.
SUGGESTIONS
3. The Internal auditor should mention the weak & key areas for
concentration to the management of the company.
1. Have you ever requested specific services of the Internal Audit function
in Improsys.?
a) Yes b) No
9. How do you rate the quality of internal Audit report issued by Internal
Audit Department?
10. Does Internal Audit have the right reporting structure (Improsys)?