JOB DESCRIPTION INTERNAL AUDITOR

Department: Internal Audit / Compliance
Designation: Internal Auditor
Location: Factory / Corporate Office
Reporting To: Management / Director / Finance Head

Job Purpose

To independently review and monitor company processes, records, inventory, production, purchases, sales, finance and HR systems to identify errors, control weaknesses, wastage, financial leakage and non-compliance, and to provide practical improvement recommendations to management.

Key Responsibilities

1. Factory & Production Audit

- Conduct regular department-wise internal audits.
- Verify production records against actual production.
- Check cutting, stitching, finishing, packing and dispatch records.
- Identify production wastage, rejection, rework and material leakage.
- Verify piece-rate and worker production/payment records.
- Check line-wise and style-wise production data.

2. Inventory & Store Audit

- Conduct physical stock verification of fabric, trims, accessories, finished goods and packing material.
- Reconcile physical stock with ERP/Excel records.
- Check material issue, return and transfer records.
- Identify shortage, excess, dead stock and unauthorized usage.
- Monitor stock control procedures.

3. Purchase & Vendor Audit

- Verify purchase orders, quotations, invoices and approvals.
- Check vendor bills against actual receipt of goods/services.
- Review rate differences and unusual purchases.
- Identify duplicate, excess or unauthorized payments.

4. Finance & Cash Audit

- Check cash transactions, expenses and supporting documents.
- Verify bills, vouchers and payment approvals.
- Review outstanding advances and employee/vendor balances.
- Identify financial irregularities and control weaknesses.

5. HR & Payroll Audit

- Verify attendance, overtime, leave and salary records.
- Check employee master data and payroll calculations.
- Verify contractor/manpower bills with actual attendance.
- Review compliance with company HR policies.

6. Dispatch & Sales Audit

- Verify finished goods against dispatch documents.
- Check invoice,



packing list and dispatch quantity.
- Verify returns, shortages and damages.
- Review sales/stock reconciliation where applicable.

7. Compliance & SOP Audit

- Ensure departments follow approved SOPs and company policies.
- Identify deviations and prepare audit observations.
- Follow up on corrective actions until closure.

Audit Reporting

- Prepare Daily/Weekly/Monthly Internal Audit Reports.
- Highlight critical financial, operational and compliance risks.
- Maintain audit observation and corrective-action tracker.
- Present major findings to Management/Director.
- Conduct follow-up audits to verify corrective action.

Key Skills Required

- Robust knowledge of internal audit and control systems.
- Good knowledge of garment manufacturing processes.
- Knowledge of inventory, production, costing and payroll.
- Strong analytical and problem-solving skills.
- Excellent Excel/MIS knowledge.
- Good documentation and reporting skills.
- Ability to identify fraud, leakage and process gaps.
- Strong communication and coordination skills.
- Should be independent, honest and detail-oriented.

Qualification & Experience

- Qualification: B.Com / M.Com / CA Inter / MBA Finance / equivalent.
- Experience: 5–10 years in Internal Audit, Factory Audit, Finance Audit or Manufacturing Audit.
- Garment/textile manufacturing experience will be preferred.

Key Performance Indicators (KPI)

1. Audit plan completion %
2. Number of audit observations identified
3. Value of leakage/wastage identified
4. Stock reconciliation accuracy
5. Corrective-action closure %
6. Reduction in repeated audit observations
7. Fraud/irregularity detection
8. Timely submission of audit reports
9. Compliance with SOPs
10. Improvement in internal controls

Authority

The Internal Auditor may inspect relevant records, stock, production reports, vouchers and departmental documents and may seek clarification from concerned employees for audit purposes.

Important: Internal Auditor should report facts objectively and should not directly participate in the day-to-day process being audited.Role & responsibilities

Preferred candidate profile

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