In today’s dynamic business environment, internal audit serves as a vital component in ensuring effective governance, risk management, and internal control processes. In Pakistan, internal audit functions are guided by the Companies Act, 2017, the Code of Corporate Governance, and standards set forth by professional bodies such as the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMAP).

Legal and Regulatory Framework

Companies Act, 2017

The Companies Act, 2017, mandates certain companies to establish an internal audit function to evaluate the adequacy and effectiveness of internal controls, risk management, and governance processes. This requirement underscores the importance of internal audit in maintaining organizational integrity and compliance.

Code of Corporate Governance

The Code of Corporate Governance, applicable to listed companies in Pakistan, stipulates that:

• An independent and adequately resourced internal audit function must be established.

• The head of internal audit should report functionally to the Audit Committee and administratively to the Chief Executive Officer (CEO).

• The internal audit function should have unrestricted access to all records, personnel, and physical properties relevant to the performance of audits.Internal Audit 360

Standards and Guidelines

Internal audit activities in Pakistan are conducted in accordance with:

• International Standards for the Professional Practice of Internal Auditing (ISPPIA): These standards, issued by the Institute of Internal Auditors (IIA), provide a framework for performing and promoting internal auditing.

• ICAP and ICMAP Guidelines: These bodies offer additional guidance tailored to the Pakistani context, ensuring that internal audit practices align with local regulatory requirements and professional expectations.ICAP

Scope of Internal Audit Services

Our internal audit services encompass a wide range of activities designed to add value and improve organizational operations:

• Risk Assessment and Management: Identifying and evaluating risks that could impede the achievement of organizational objectives.

• Internal Control Evaluation: Assessing the effectiveness of internal controls and recommending improvements.

• Compliance Audits: Ensuring adherence to laws, regulations, and internal policies.

• Operational Audits: Evaluating the efficiency and effectiveness of operational processes.

• Information Systems Audits: Reviewing IT systems and controls to ensure data integrity and security.

• Fraud Investigations: Detecting and investigating instances of fraud or financial misconduct.

Benefits of Internal Audit

Implementing a robust internal audit function offers numerous advantages:

• Enhanced Governance: Strengthening oversight mechanisms and accountability.

• Improved Risk Management: Proactively identifying and mitigating potential risks.

• Operational Efficiency: Streamlining processes and reducing waste.

• Regulatory Compliance: Ensuring adherence to applicable laws and standards.

• Fraud Prevention: Detecting and deterring fraudulent activities.internalaudit.psu.edu+1TemplateLab+1

Our Approach

Our internal audit methodology is structured to deliver comprehensive and actionable insights:

1. Planning: Understanding the organization’s objectives, processes, and risk landscape.

2. Fieldwork: Collecting and analyzing data through interviews, observations, and document reviews.

3. Reporting: Communicating findings, conclusions, and recommendations to management and the Audit Committee.

4. Follow-up: Monitoring the implementation of agreed-upon corrective actions.

Why Choose Our Services

• Expertise: Our team comprises certified internal auditors with extensive experience across various industries.

• Customized Solutions: We tailor our services to meet the unique needs and challenges of each client.

• Confidentiality: We uphold the highest standards of confidentiality and professional ethics.

• Regulatory Alignment: Our practices are aligned with local and international standards, ensuring compliance and best practices.

Get in Touch

Enhance your organization’s governance and risk management capabilities with our expert internal audit services.

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