Find and fix financial risks before they become serious problems
Book Free ConsultationInternal audit is an independent assessment of an organization's financial controls, operational processes, and risk management practices. Unlike external audit, which focuses on the accuracy of your financial statements, internal audit focuses on the effectiveness of your internal controls and the risks your business faces.
A well-run internal audit function identifies weaknesses in your systems before they are exploited, whether by error, fraud, or operational failure. It gives management and the board a clear, objective view of where the business is exposed.
In Nepal, internal audit requirements are mandatory for companies of certain sizes and sectors, including banks, insurance companies, and some publicly traded entities. For others, internal audit is a best practice that responsible management adopts proactively.
Organizations without proper segregation of duties and financial controls are highly vulnerable to internal fraud. In Nepal, cash-handling businesses are particularly exposed.
Without an audit function reviewing processes, inefficiencies in procurement, expense approvals, and asset management can drain significant value from the business year after year.
Management cannot objectively evaluate their own systems. An independent audit function provides the assurance that controls are working as intended.
For NGOs, banks, and regulated entities in Nepal, compliance gaps discovered during external inspections or donor reviews are damaging and can threaten operating licenses.
Without internal audit, employee fraud, procurement irregularities, and expense abuse can continue undetected for extended periods, causing significant financial damage.
Persistent control weaknesses identified by external auditors lead to qualified audit opinions, which damage the organization's credibility with banks, donors, and regulators.
Regulators in Nepal, including NRB for financial institutions and SWC for NGOs, impose sanctions on organizations found to have systematic compliance failures.
International donors require strong financial governance and regular internal audit as a condition of continued funding. Organizations that cannot demonstrate this lose funding.
We work with management and the board to define the scope of the internal audit, prioritizing areas of highest risk and strategic importance.
We document key business processes to understand how transactions flow through the organization and where controls are applied.
We conduct on-site audit fieldwork, testing the effectiveness of key controls through sample testing, document review, and observation.
We prepare a comprehensive internal audit report detailing findings, risk ratings, and specific recommendations for each issue identified.
We support management in implementing the audit recommendations, providing guidance on control design and process improvement.
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Typically completed in 2 to 4 weeks for a standard internal audit. Timeline depends on document readiness and government processing.
Timeline depends on document readiness and government processing.
Investigation-grade financial analysis to detect fraud and resolve disputes.
Learn moreComprehensive financial and compliance due diligence before major transactions.
Learn moreFinancial and operational policies that create structure and accountability.
Learn moreBook a free 15-minute consultation and we will tell you exactly what you need.
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