Providing guarantee is a very common part of business finance wherein one person provides guarantee to the bank or financier on behalf of the other person for securing loan or credit facility. In some cases, commission is paid as a consideration for providing guarantee. CBIC has received various representations with respect to applicability of GST on personal guarantee provided by Director to the bank for granting credit facility to the company or corporate guarantee provided by the company on behalf of its sister concern or subsidiary company.
FAQs on Internal Audit
The role of an internal audit varies with the scope and is extensive. However, the major aim of internal audit is assuring that various internal processes, rules, regulations, policies, compliances, corporate governance, and risk management are intact and followed properly.
Internal audit is not confined only to financial transactions but also is extended to the task of reviewing the efficiency and economy of resource utilization.
For example – a management audit that is check and review of plans, objectives, decisions, and policies of the top management
The main objective of the internal audit is to have a check that all processes are implemented properly and are giving desired reults to the organisation
Internal auditors focus on the organization’s risk assessment, monitoring plans, and policies to mitigate and communicate the risks appropriately. The core aim is evaluating the risk and finding measures to sustain the same