In the evolving business landscape of 2025, internal audit functions across Indian organizations are no longer limited to compliance checks or financial controls. They are now strategic enablers—providing foresight, risk intelligence, and assurance in an increasingly volatile, tech-driven, and regulated environment.
From mid-sized enterprises to listed corporates, the internal audit function is being redefined to keep pace with emerging risks, shifting stakeholder expectations, and technological disruptions. For Indian companies, particularly those governed by SEBI, RBI, IRDAI, and other sectoral regulators, strengthening internal audit is not just a best practice—it’s a business imperative.
Key Shifts in Internal Audit: Indian Perspective
1. Integrated Risk Management & Forensic Perspective
Gone are the days of siloed audits. In 2025, progressive audit teams are embedding risk management and Forensic Perspective into every layer of audit planning and execution and some IA teams are having dedicated verticals for Risk Management and Forensic. This integrated approach enables auditors to:
- Identify interdependencies between operational, financial, compliance, and cybersecurity risks
- Align audit coverage with the company’s Enterprise Risk Management (ERM) framework & Manage Fraud Risk on proactive basis.
- Support proactive decision-making by offering risk-based insights and red flag reporting to leadership
2. Emphasis on Continuous Monitoring
Leading Indian companies are adopting real-time risk monitoring & forensic tools to go beyond periodic audits. Technologies like RPA, analytics dashboards, and AI-powered anomaly detection are being leveraged to:
- Track transactions and controls on a continuous basis
- Detect fraud or process failures early
- Reduce audit fatigue by automating routine checks
- Use of software like “ Intella “ is gaining momentum
This is particularly relevant in sectors such as BFSI, FMCG, telecom, and manufacturing, where high transaction volumes demand ongoing oversight.
3. Adherence to Evolving Standards
With the increasing alignment to global frameworks such as the International Standards for the Professional Practice of Internal Auditing (IPPF) and ISO 31000, Indian auditors must now also:
- Incorporate ESG, cybersecurity, and third-party risk into audit charters
- Prepare for regulatory audits and inspections with increased rigour (e.g., under SEBI’s LODR Regulations or RBI’s supervisory expectations)
- Ensure traceability and documentation across audit trails to withstand scrutiny
Best Practices for Internal Audit Teams in India
✅ Stakeholder Engagement
Internal auditors must act as business partners, not just watchdogs. This involves:
- Engaging with CXOs, functional heads, and the Board’s Audit Committee
- Understanding business priorities to align audit objectives accordingly
- Providing insights, not just findings
✅ Skill Development & Tech Enablement
The demand for tech-savvy auditors has never been higher. Audit teams should be trained in:
- Data analytics, cybersecurity, and forensic audit tools
- Industry-specific compliance (e.g., IRDAI for insurers, FSSAI for food businesses)
- Soft skills like communication, negotiation, and stakeholder management
- Use of AI in audits on large scale.
Upskilling ensures that the internal audit function remains relevant and adds tangible value to the business.
Strengthening Internal Audit: A Strategic Priority
For Indian businesses navigating digital transformation, ESG mandates, and regulatory shifts, internal audit must evolve from a back-office control function to a strategic advisory role. This transformation involves:
- Establishing a strong audit charter aligned with Board and CEO priorities
- Leveraging automation and data for efficiency and depth
- Creating a culture of transparency, ethics, and continuous improvement
How We Can Support
At DVM & Associates, we assist organizations in strengthening their internal audit functions through:
�� Risk-Based Internal Audit (RBIA) Design
��️ Integrated Risk & Governance Frameworks
�� Implementation of Audit Analytics Tools
�� Training and Capability Building for In-House Teams
�� Outsourced or Co-Sourced Internal Audit Services
Our services are aligned with the needs of Indian listed companies, SMEs, and fast-growing startups looking to scale sustainably while staying compliant and risk-resilient. We conduct all internal audits with a forensic angle for critical processes.
Internal Audit is no longer about checking the past. It’s about safeguarding the future.
Let us help you build an audit function that’s future-ready.