AAI plans to enter into a joint venture with PGL from 1st April, 2024. TAPL is new vehicle for this purpose. What role internal audit function can…

The internal audit can play an important role in joint venture in assessing key governance risks. Such risks in a joint venture may include: - Establishing joint venture strategy and its monitoringIssues in capital planningControls governing investments in joint ventureDivision of governance functions and consequent delegation of authorityAgreement between both the stakeholders on key governance matters The purpose of a joint venture is sharing risks and rewards in developing new market for “premium economy” segment in India. A joint venture involves joint control of a business with contribution of resources by investors to run it. Internal audit provides independent assurance on effectiveness of internal controls and risk management processes to enhance governance and achieve organisational objectives. In fact, internal audit can help an organisation in achieving its objective without compromising upon its independence. It includes review of operational activities, underlying internal controls and compliance with applicable laws and regulations. Therefore, internal audit function can play a critical role in joint venture like TAPL.