INTERNAL AUDIT

                                                               INTERNAL AUDIT

A new section 138 of the companies Act 2013 come into force from 1^st  april, 2014 which provides the provision of appointment of internal audit. According to sec 138 of the companies Act 2013 and the companies (Accounts) Rules, 2014.

Following are the classes of companies shall be required to carry out internal audit:

1.       All listed company.

2.       Unlisted public company having:

1.       Paid-up capital >= 50 crore. OR

2.       Turnover           >= 200 crore. OR

3.       Outstanding loans or borrowing from banks or public financial institution >= 100 crore at any point of time during the preceding financial year.OR

4.       Outstanding deposit >= 25 crore at any point of time during preceding financial year.

3.       Every private company having:

                                                            

1.       Turnover>= 200 crore. Or

2.       Outstanding loan or borrowing from bank or public financial statement >= 100 crore.

Key point: All the provision should be checked on the basis of relevant preceding financial year.

Who can be appointed as an internal auditor:

1.       A chartered accountant.

2.       A cost accountant.

3.       Such other professional as may be decided by the board.