Sunny Electric Ltd. is a regional electricity supply company facing frequent power outages, billing discrepancies and high transmission losses. The management has asked the internal audit team to conduct an audit of the

The focus areas while conducting internal audit of Sunny Electric Ltd., an Electricity Supply Company, include the following: Power Generation and Transmission Efficiency: Assess losses during transmission and distribution, and reasons for power outages. Billing and Revenue Collection: Review accuracy and completeness of billing systems, meter reading, and collection processes. Regulatory Compliance: Check adherence to electricity regulatory authority guidelines and licensing requirements. Collection of debts: Review collection timeline for recovery of debts. Inventory and Asset Management: Verify controls over critical equipment, spares, and infrastructure maintenance. Safety and Environmental Compliance: Ensure compliance with safety standards and environmental regulations.