Appointment of internal auditor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2015 Section 138 of the companies act read along with Rule 13 of the Companies ( Accounts) rules 2014 prescribe compulsory appointment of Internal auditor for a private limited company which has a turnover above Rs. 200 crore or above.

In the explanation (i) to the rules, the explalnation reads that an Internal auditor MAY or MAY not be an employee of the company.

If we assume that he is an employee ( since the rule permits so), does he need to be appointed as a auditor in Board Meeting ( per sub rule 4 of rule 8 of the Companies Meetings of the board and its powers)

Since he is not a firm, can his individual name be used in the resolution? Please guide

What if he is in the internal audit team but is not appointed in the board meeting at all/

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 September 2015 An individual can be an internal auditor.

A formal appointment be made so as to bind the person as internal auditor. (The team may consist of many people of which so and so is internal auditor.)