SPECIAL ISSUE New India Assurance（新印度特刊保证）.doc

CHAPTER – 1 INTRODUCTION This Manual gives guidance on matters that need to be considered and procedures that should be followed by Internal Audit-cum-Inspection Department. Internal Audit is an independent appraisal function within the organisation for review of systems and the quality of performance as a service to the organization. It objectively examines, evaluates and reports on the adequacy of internal control as a contribution to the proper, economic, effective and efficient use of resources and guards against leakage of revenue. OBJECTIVES AND SCOPE : The main features of internal audit set up in The New India Assurance Company Ltd, would be as under :- a). Objective : Internal audit-cum-inspection is not to be regarded as an extraneous activity, concerned with criticism and fault-finding. It is an integral part of the Company’s function and its objective is to help the management by providing feedback on all the areas of the Company’s operations, so that action can be taken if any thing goes wrong and changes in procedure and methods can be introduced, if found necessary, in order to tone up administration and improve efficiency. b). Functions : The main functions of the Internal Audit-cum-Inspection Department may be summarized as follows :- Review whether the accounting, financial, budgetary and operating control are adequate and have been efficiently applied. Examine whether receipts of the Company on account of premium or otherwise have been correctly assessed and realized as per prescribed tariffs, rules, regulations and orders; whether they have been correctly accounted and promptly deposited in Banks; whether all sums of money paid into the banks in cash or by cheques / drafts have been credited to the Company’s accounts; and whether there is effective follow-up for recovery of arrears. Examine whether payments by way of claims, commission and other expenses have been made with due regularity and propriety after proper sanction accorded by a