Internal Audit Services
Internal audit function set up and run under Section 138 of the Companies Act, 2013 — process, control and risk reviews that give your board and audit committee an independent view of what's actually happening inside the business.
Internal audit is an independent, ongoing review of a company's internal controls, risk management and operating processes — separate from and in addition to the statutory audit. Under Section 138 of the Companies Act, 2013, certain classes of companies (based on turnover, borrowings, deposits or paid-up capital thresholds) are required to appoint an internal auditor; many other companies commission internal audit voluntarily for governance and risk visibility. The Classic Partners LLP sets up and runs the internal audit function — from risk-based audit planning to process walkthroughs and quarterly reporting to the audit committee.
An independent check on your controls, not a repeat of statutory audit
Statutory audit gives an opinion on the financial statements once a year. Internal audit runs through the year, testing whether the processes and controls behind those numbers actually work — procurement, inventory, revenue recognition, payroll, IT access controls, and whatever else the risk assessment flags.
We build a risk-based annual internal audit plan, agree it with your audit committee, then execute process-by-process, reporting observations and management action points on a quarterly cadence.
- Risk-based annual audit plan
- Process & control walkthroughs
- Procurement, inventory & revenue cycle reviews
- IT general controls & access reviews
- Quarterly reporting to audit committee
- Section 138 compliance for applicable companies
Who this is for
A statutory requirement for some companies, a governance best-practice for many more.
| Situation | Why it's needed | What we deliver |
|---|---|---|
| Company meeting Section 138 thresholds | Statutory requirement under the Companies Act, 2013 | Board-approved internal audit plan & reports |
| Fast-growing private company | Controls often lag growth; internal audit catches gaps early | Process-level risk review |
| Company preparing for funding/IPO | Investors expect a functioning internal audit before diligence | Documented control framework |
| Company with a specific concern | Needs a focused review, not a full annual function | Scoped process audit |
What our internal audit covers
Structured around a risk-based plan agreed with your audit committee.
Risk Assessment & Planning
Annual risk-based internal audit plan agreed with the audit committee.
Process Walkthroughs
Procurement, sales, inventory, payroll and other cycles reviewed end-to-end.
Control Testing
Design and operating effectiveness testing of key controls.
IT General Controls
Access management, change management and data integrity checks.
Quarterly Reporting
Structured observations and management action points each quarter.
Section 138 Compliance
Function structured to meet Companies Act internal audit requirements where applicable.
Our four-stage internal audit process
Built to run through the year, alongside your operations.
Risk assessment
Map business risks and agree the annual audit plan with the audit committee.
Process audits
Walkthrough and test controls cycle by cycle, on the agreed schedule.
Reporting
Quarterly reports with observations, risk ratings and management responses.
Follow-up
Track closure of prior observations in the next audit cycle.
Internal audit your audit committee can actually rely on
Risk-based, fixed-fee and structured to meet Section 138 where it applies.
Risk-based, not checklist-based
The plan starts from your actual business risks, not a generic template.
Section 138-ready structure
Function structured to meet Companies Act requirements where applicable.
Quarterly, board-ready reporting
Reports written for the audit committee, not just the finance team.
Fixed annual fee
One written quote for the full year's plan, agreed upfront.
Sector-aware process knowledge
Testing calibrated to how your industry's processes actually run.
One firm, all compliance
Works alongside our concurrent audit and statutory audit practices.
Internal audit questions we're asked
Straight answers before you set up an internal audit function.
Ready to set up your internal audit function?
Tell us your risk areas and reporting needs. You'll get a fixed quote and a partner-level contact within one working day.
