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Discussion > Audit >

CARO - Internal Audit Clause

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CA Final


[ Scorecard : 129]
Posted On 13 November 2009 at 21:11 Report Abuse

Extract from CARO
(vii) in the case of listed companies and/or other companies having a paid-up capital and reserves exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit
system commensurate with its size and nature of its business;

Does this statement mean that CARO is applicable to all listed companies and other companies have to fulfill the conditions given above ?

OR

All companies have to fulfill the conditions given above?

 


Total thanks : 1 times

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chintz
CA Final


[ Scorecard : 129]
Posted On 13 November 2009 at 21:48

This clause is applicable to all listed companies irrespective of the size and turnover.
Non listed companies had to satisfy the conditions so as to attract the applicability of this clause.

By B.Chakrapani warrier in Query section.

 

 




Member (Account Deleted)


[ Scorecard : 102]
Posted On 13 November 2009 at 22:48

thanks:)




Member (Account Deleted)


[ Scorecard : 102]
Posted On 13 November 2009 at 22:50

thanks:)

 




hemal
CA FINAL


[ Scorecard : 171]
Posted On 14 November 2009 at 11:43

For applicability plz find the condition from books. However CARO nt compulser internal audit to any company, it just ask abt the internal audit is implemented or not.




NAQSH GARG
Practice


[ Scorecard : 26]
Posted On 17 November 2009 at 17:05

The Applicability of Internal Audit, no where mentioned in the Companies act, 1956, but it is only a requirement of CARO, 2003 on which the statutory auditor (s) of those companies on which the CARO ,2003 is applicable is required to give the disclosure in his report about the compliance of the Internal Audit as required by the para VII of the said Order, hence non compliance of the said requirement by the company would be a qualification in the auditors report.

Now, from the above it is very clear that the requirement of Internal Audit is applicable on those companies on which the CARO, 2003 is applicable.

CA. Bal Mukund Chaturvedi

New Delhi.

 

 

 




hemal
CA FINAL


[ Scorecard : 171]
Posted On 18 November 2009 at 11:43

Sorry i m not agree as the disagreement with every clause in CARO not resulted in qulification. It just inquiry abt some point which can not affect true & fair view. As implementation of internal audit is not affect true & fair view so not resulted in qulification.




Deepak
Student


[ Scorecard : 127]
Posted On 27 November 2009 at 13:38

100% agree with Garg!




Heena
Article


[ Scorecard : 25]
Posted On 06 February 2012 at 13:47

Hi....I want all details about Internal Audit that is useful for practical use




VARUN.C.DAS
CA FINAL


[ Scorecard : 356]
Posted On 06 April 2012 at 19:55

 

        I.            As per section 581ZF of companies act 1956. INTERNAL AUDIT : Every Producer Company shall have internal audit of its accounts carried out, at such interval and in such manner as may be specified in articles, by a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Institute of Chartered Accountants Act, 1949 (38 of 1949)



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