The Internal Auditor independently reviews and monitors company processes, records, inventory, production, purchases, sales, finance, and HR systems to identify errors, control weaknesses, wastage, financial leakage, and non-compliance, providing practical improvement recommendations to management.

Responsibilities

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.

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.

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.

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.

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.

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.

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.

Skills

• Strong 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.

Qualifications

• 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)

• Audit plan completion %
• Number of audit observations identified
• Value of leakage/wastage identified
• Stock reconciliation accuracy
• Corrective-action closure %
• Reduction in repeated audit observations
• Fraud/irregularity detection
• Timely submission of audit reports
• Compliance with SOPs
• Improvement in internal controls

Authority

• Inspect relevant records, stock, production reports, vouchers, and departmental documents.
• Seek clarification from concerned employees for audit purposes.
• Note: The Internal Auditor should report facts objectively and should not directly participate in the day-to-day process being audited.