JOB DESCRIPTION

INTERNAL AUDITOR TEXTILES / FASHION RETAIL INDUSTRY

1. Position Details

Position: Internal Auditor
Department: Internal Audit
Industry: Textiles / Fashion Retail
Reporting To: Management / Managing Director / Audit Committee
Location: Head Office & Branch Locations
Experience: 5–8+ years in Internal Audit, preferably in Textiles, Garments, Fashion Retail, Hypermarket, or Multi-Branch Retail
Qualification: CA / CA Inter / CMA / M.Com / MBA Finance or equivalent professional qualification
Preferred: Experience in retail audit, inventory audit, stock control, and multi-branch operations

2. Job Purpose

To independently evaluate and monitor the financial, operational, inventory, and administrative activities of the organization and ensure that company policies, internal controls, statutory requirements, and management procedures are properly followed.

The Internal Auditor will identify financial and operational risks, detect irregularities, prevent revenue leakage, improve internal controls, and provide practical recommendations to management for improving business efficiency and profitability.

3. Key Responsibilities

A. Financial Audit

- Conduct regular audits of branch and head-office financial transactions.
- Verify cash collections, cash deposits, petty cash, expenses, and payment transactions.
- Check sales reconciliation between billing systems, cash, card, UPI, bank deposits, and other payment modes.
- Verify purchase invoices, payment vouchers, debit notes, credit notes, and expense claims.
- Review accounts receivable, supplier balances, advances, and outstanding payments.
- Identify accounting errors, unauthorized transactions, duplicate payments, and financial irregularities.
- Verify adherence to approved budgets and financial procedures.

B. Inventory & Stock Audit

- Conduct periodic physical stock verification at branches, warehouses, and stores.
- Reconcile physical stock with ERP/software records.
- Identify stock shortages, excess stock, damaged goods, slow-moving stock, and obsolete inventory.
- Verify inward and outward stock movements.
- Audit inter-branch stock transfers and ensure proper documentation.
- Check stock receiving procedures and GRN documentation.
- Monitor stock adjustment and stock write-off procedures.
- Investigate stock variances and report significant discrepancies to management.
- Ensure proper handling and documentation of damaged, defective, and returned products.

C. Sales & Retail Audit

- Audit daily and monthly sales transactions across branches.
- Verify sales returns, cancellations, discounts, exchanges, and promotional offers.
- Check whether discounts are provided only according to approved company policies.
- Review unusual sales transactions and identify potential revenue leakage.
- Verify POS/billing system transactions and reconciliation.
- Monitor unauthorized billing, manual bills, void bills, and abnormal transactions.
- Review branch sales performance against stock availability and business trends.

D. Branch Operations Audit

- Conduct scheduled and surprise audits at branches.
- Review branch opening and closing procedures.
- Verify cash handling and daily cash reconciliation.




- Check compliance with company SOPs and operational procedures.
- Inspect warehouse and stockroom arrangements.
- Review branch housekeeping, security, documentation, and asset management.
- Verify employee attendance and operational compliance where relevant to audit controls.
- Identify operational inefficiencies and recommend corrective actions.

E. Purchase & Vendor Audit

- Verify purchase orders, quotations, invoices, GRNs, and payment approvals.
- Check vendor selection and approval procedures.
- Review purchase prices and identify unusual price variations.
- Verify supplier rebates, discounts, schemes, and credit notes.
- Identify duplicate invoices and unauthorized purchases.
- Review vendor outstanding balances and advances.
- Ensure purchases are made within approved authority limits.

F. HR & Payroll Audit

- Audit payroll records and verify employee master data.
- Check salary, overtime, incentives, allowances, deductions, advances, and other payroll components.
- Verify new employee joining and resigned employee deletion procedures.
- Review attendance, leave, overtime, and salary clearance records.
- Verify employee advances and loan deductions.
- Check compliance with approved HR policies and authorization procedures.
- Identify duplicate, inactive, or unauthorized employee records.

G. Statutory & Compliance Audit

- Review compliance with applicable statutory requirements.
- Verify supporting records relating to PF, ESI, Professional Tax, Labour Welfare Fund, TDS, GST, and other applicable statutory obligations.
- Ensure statutory payments and filings are properly documented.
- Coordinate with Finance, HR, and external/statutory auditors when required.
- Highlight compliance gaps and follow up on corrective action.

H. Internal Control & Risk Management

- Evaluate the effectiveness of existing internal controls.
- Identify financial, operational, inventory, and compliance risks.
- Develop and recommend improved control procedures.
- Review authorization and approval mechanisms.
- Monitor segregation of duties and access controls.
- Identify potential fraud risks and suspicious transactions.
- Conduct special investigations as directed by management.
- Prepare risk-based audit plans for branches and departments.

I. Audit Reporting & Follow-up

- Prepare detailed audit reports after each audit assignment.
- Clearly document audit observations, supporting evidence, risks, and financial impact.
- Categorize findings based on their level of seriousness.
- Provide practical corrective and preventive recommendations.
- Discuss audit findings with concerned HODs/Branch Managers.
- Maintain an audit observation tracker.
- Follow up on pending corrective actions.
- Report unresolved or critical issues directly to senior management.

4. Key Areas to be Audited

The Internal Auditor should regularly review:

1.



Sales & Billing
2. Cash & Bank Transactions
3. Inventory & Stock
4. Purchase & Vendors
5. Accounts & Finance
6. Payroll & Employee Advantages
7. HR & Attendance Controls
8. Branch Operations
9. Warehouse Operations
10. Fixed Assets
11. Discounts & Promotions
12. Sales Returns & Exchanges
13. Inter-Branch Transfers
14. Statutory Compliance
15. ERP/POS/System Controls
16. Company Policies & SOP Compliance

5. Required Skills & Competencies

- Strong knowledge of accounting and auditing principles.
- Good understanding of retail and textile business operations.
- Strong inventory audit and stock reconciliation skills.
- Excellent analytical and problem-solving ability.
- Ability to identify financial irregularities and control weaknesses.
- Good knowledge of ERP/POS and accounting systems.
- Strong Excel and data-analysis skills.
- Excellent report-writing and documentation skills.
- Strong communication and interpersonal skills.
- High level of integrity, confidentiality, and professional ethics.
- Ability to work independently and handle multiple branch audits.
- Willingness to travel to different branches and operational locations.
- Strong observation and investigative skills.

6. Preferred Industry Experience

Candidates with experience in the following sectors will be preferred:

- Textile Retail
- Garment Retail
- Fashion Retail
- Department Stores
- Hypermarkets
- Supermarkets
- Multi-Branch Retail
- Wholesale & Distribution
- FMCG Retail
- Jewellery or other high-volume retail businesses

7. Performance Indicators / KPIs

- Timely completion of branch and departmental audits.
- Accuracy and quality of audit reports.
- Identification of stock and financial discrepancies.
- Reduction of revenue leakage.
- Reduction in inventory variances.
- Timely closure of audit observations.
- Improvement in internal control compliance.
- Detection and prevention of fraud or irregular transactions.
- Compliance with company SOPs and financial procedures.
- Effectiveness of audit recommendations.

8. Personal Attributes

The candidate should demonstrate:

- Integrity & Honesty
- Confidentiality
- Attention to Detail
- Professional Judgment
- Analytical Thinking
- Problem-Solving Ability
- Leadership & Accountability
- Robust Communication
- Independent Working Ability
- Willingness to Travel
- Professional Approach

9. Reporting & Documentation

The Internal Auditor shall maintain:

- Branch Audit Reports
- Stock Audit Reports
- Cash Audit Reports
- Sales Audit Reports
- Purchase & Vendor Audit Reports
- Payroll Audit Reports
- Compliance Audit Reports
- Audit Observation Register
- Corrective Action Tracker
- Risk Register
- Monthly Internal Audit Summary
- Special Investigation Reports, where applicable

10. Overall Objective

The Internal Auditor is responsible for providing independent assurance to management that company assets, revenue, inventory, financial resources, and business processes are properly controlled and protected.

The role should contribute to fraud prevention, reduction of financial leakage, inventory accuracy, operational efficiency, policy compliance, and overall improvement in profitability and business controls.

📌 Internal Auditor (Thodupuzha)
🏢 Atlas Affordable Fashion Destination
📍 Thodupuzha