Terms of Reference

Scope of Internal Audit

  1. Review the Company’s internal policies, manual and guidelines like: financial manual, Human Resource Manual, Procurement Policy 2075.

  2. Evaluation of strict compliance of external laws, regulations and directives to the extent applicable to the Company.

  3. Ensure that the policies and manuals exist in the company and are regularly updated and strictly followed.

  4. Review the policies and developments regarding Management Information System (MIS) as applicable to the Company.

  5. Ensure systematic scientific filing and indexing system exists at company with adequate security system in place.

  6. Ensure strong security system is in place at company premises to cope up with natural and non-natural risks.

  7. Ensure existence of internal control system at company and conformity with financial accountability.

  8. Ensuring that the transactions are authorized and recorded timely as per their nature and accounting principles are followed. Also reviewing the adequacy and appropriateness of supporting documents attached in vouchers.

  9. Review of authorization and supporting documents attached in expenses and income to the extent applicable to the Company.

  10. Reviewing the effectiveness of planning and budgeting system including variance analysis to the extent applicable to the Company.

  11. Review the existence and effectiveness of internal control system over cash and bank operations.

  12. Review the advances and its settlement system as per company’s financial manual.

  13. Examine that internal control system and policies exist for the efficient mobilization, proper recording and adequate safeguarding of fixed assets.

  14. Examine that internal control system and policies exist for the efficient mobilization, proper recording and adequate safeguarding of stocks/inventory.

  15. Ensure optimum human resource management system is in place so as to increase productivity and efficiency of human resources.

  16. Reviewing the contract enter in to by the company with suppliers of goods and services has been done and ensuring that the terms of contract are strictly adhered to.

  17. Ensure minute book of Board of Directors and Sub committees of company are maintained and kept in safe custody.

  18. Provide response during audit for spot correction and rectification to control misappropriation.

  19. Follow-up report on issues raised in previous internal audit report.