2 years ago (2016-11-03 12:16:45)

Appointment of an Internal Auditor

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Appointment of an Internal Auditor of the Company and Conduction of Internal Audit

In accordance with Section 138(1) of the Companies Act, 2013, such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company.

Key Considerations:

Only following class of companies as prescribed in the Companies (Accounts) Rules, 2014 are required to appoint an Internal Auditor or a firm of internal auditors, namely:-

a) Every Listed Company;

b) Every unlisted Public Company having-

i. paid up share capital of Rupees 50 crore or more during the preceding financial year; or

ii. turnover of Rupees 200 crore or more during the preceding financial year; or

iii. outstanding loans or borrowings from banks or public financial institutions exceeding Rupees 100 crore or more at any point of time during the preceding financial year; or

iv. Outstanding deposits of Rupees 25 crore or more at any point of time during the preceding financial year; and

c) Every private company having-

i. turnover of Rupees 200 crore or more during the preceding financial year; or

ii. outstanding loans or borrowings from banks or public financial institutions exceeding Rupees 100 crore or more at any point of time during the preceding financial year.

 The following procedure is to be followed for Appointment of an Internal Auditor visit: - https://lexcomply.com/Procedure-under-Companies-Act-2013.php?page=Appointment-of-an-Internal-Auditor&key=OQ

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