1. What is the set up of Internal Audit?

What is the set up of Internal Audit?
The Corporation is having its own in house Internal Audit Cell which is headed by Director (Finance) at Head Office. As far as possible, Audit Officer is posted at each Branch, and at HO, the Section is headed by General Manager.

What is nature of Internal Audit and its scope?
Internal Audit in the Corporation is in the nature of concurrent Audit. It covers, entire activities of the Corporation. It initiates new internal control systems, procedures and rules and also modifications / corrections wherever / whenever required.

Is there any Internal Audit Manual?
The Corporation has an Internal Audit Manual, which is thoroughly revised from time to time depending upon changes. It is kept up to date by issue of Circular.

What is the system of reporting?
Monthly internal audit repots are prepared by the Audit Officers at the branches, which is being sent to HO. The Audit Report is prepared in 3 columns viz. Observations, Reply of the Branch and Final Action. Report is prepared in 2 parts, i.e. Part A and Part B.  Part A includes pending paras and part B covers the current observations. At HO, the reports are reviewed and important observations are put up to the Management for their perusal and decision.
During the cotton season Audit Officers are making frequent visits to the Centres and verifying the operational aspects. The visit reports are prepared and sent to HO for perusal.

Is there any Audit Committee?
In accordance with Section 292-A of the Companies Act, 1956, the Corporation has constituted an Audit Committee, which is a sub-committee of the Board of Directors.
The Committee meets at least twice a year and reviews important internal audit observations, cases of misappropriation / fraud, action taken by the management, disposal of queries under RTI Act, 2005 etc., and issue necessary directives, if required.