Appointment of an Internal Auditor
Online Link to Act/Rule/Legislation
Initial Setup or Ongoing Maintenance
Ongoing compliance requirement
Filing and Maintenance Requirements
Under Section 138 read with Rule 13 of the Accounts Rules every (i) listed company; (ii) unlisted Public company having a paid up capital of 50 crores or turnover of 200 crores or outstanding loans or borrowings from banks or public financial institutions of 100 crores or outstanding deposits of 25 crores; (iii) every private company having a turnover of 200 crores or outstanding loans or borrowings from banks or PFIs of 100 crores; is required to appoint an internal auditor.
Application Guidelines / Responsible Persons / Comments
Two important guidelines to be noted are:
1.Listed companies has to comply with section 138 of companies act 2014 irrespective of any limits imposed by the law.
2.Internal auditor should 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 functions and activities of the company.