Internal audit function has potential to improve operating efficiency and improving the health of the organisation for achieving long-term sustainability for MSMEs
What is MSME?
Micro, Small and Medium Enterprises (MSME) constitute the backbone of an economy in maintaining an appreciable growth rate and in generating employment opportunities. This sector has been regarded as engine of economic growth and social development in many developed and developing countries. Contribution of MSMEs to the Indian economy in terms of employment generation, containing regional disparities, fostering equitable economic growth and enhancing export potential of the country has been quite phenomenal. Despite some infrastructural deficiencies and challenges like flow of institutional credit and inadequate market linkages, this sector has registered remarkable success about increase in number, quantum of investment, scale of production and overall contribution to national GDP.
A lot of articles have been written in recent times depicting the trends in terms of role of Internal Auditors and increasing expectations of various stakeholders from the Internal Auditors. However, much of this information essentially provides perspectives on roles played by internal auditors in large organizations, which already have established systems and processes. The audit departments in these companies are fairly evolved with independent Charters and reporting to the Board Audit Committees.