Automotive industry audit book.pdf

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  The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi Technical Guide on Internal Audit of Automobile Industry  Te  DISCL The viCharteexpres   hnicof AIMER: ews expressered Accountased by the au The Instit (  l Guiutom d in this Guints of India thor(s). Internal Au te of Cha et up by a N e on Ibile I   de are those ay not nece it Standard tered Acc n Act of Pa ew Delhi nternndust of author(s). sarily subscri   s Board   ountants rliament) l Audiy   The Institute ibe to the vie f India t of s  February/2017/P2076 (New)    Foreword Indian Automobile Industry is capital intensive, highly competitive, subject to price and market risks, effected by regulatory norms leading to a shorter life span of models, and driven by constantly changing consumer preferences. This industry faces many accounting and regulatory challenges stemming from various factors, including its capital structure, complex master supply agreements, sales agreements, large dealer networks, etc. Considering the unique nature of this industry, internal auditors can play an important role in helping to optimize the operations; establishing financial reporting controls as well as business level operating controls; assisting in key strategic decisions and managing expectations of both internal and external stakeholders. I congratulate CA. Mukesh Singh Kushwah, Chairman, CA. Anil S. Bhandari, Vice-Chairman and other members of the Internal Audit Standards Board for bringing out this “Technical Guide on Internal Audit of Automobile Industry” which is an important publication providing practical and valuable guidance to internal auditors related to this industry. I am sure that this publication will prove to be very informative and useful to members to understand the peculiarities of this unique industry and thereby apply best internal audit techniques and procedures while discharging their professional responsibilities as internal auditors. February 5, 2017 New Delhi CA. M. Devaraja Reddy President, ICAI   
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