Internal Audit of Start-Ups

Start-up has emerged as an altogether different business model in last one decade which is disruptive, speed oriented, innovative and led by younger generation.

We are working with start-ups form last 5 years and understand their business model thoroughly. As per our experience, Start-ups which has scaled up, require a unique and customized approach towards internal audit which add value rather being just a fault finding exercise or a tick mark as an compliance.

Usually, there are no precedents in Start-ups which makes them vulnerable and at the same time agile also to adopt any new approach which enhances the overall value offering by them.

Scope of work:

• Review the MIS and other metrics
• Review whether the company has registered itself under all applicable compliances as per nature of work and industry
• Status of tax deposit, utilization of input credit and filing of returns
• Review the system of procurement of goods, services and capital assets
• Study the inherent risk of fraud or double payment
• Process of reconciliation of revenue being collected from different mode of payments i.e. Cheque/NEFT/Online/Discount coupons/Channel partner etc.
• Review the controls in the operations of business which impact the accounting and taxation information
• Review of payroll process
• Any other areas as per the specific requirement of business or founders or investors

Execution strategy:

• Understand the business model and the uniqueness about it
• Understand the apparent pain points which can be addressed by Internal Audit
• Prepare the schedule of Internal Audit and share it on Google docs with relevant people
• Start the audit with a focus on system approach
• Discussion with relevant people about any queries or observations during the course of audit
• Compile the findings and observations
• Suggest the right course of action to fix the problems observed
• Ask for the comments and incorporate them in the audit report
• Submit the final report to the management/founders.
• Review the implementation status of action points of last report.