04 February 2009
Does the provision of interna audit as stated in CARO i.e. "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" is applicable to the subsidiary of listed company. Do subsidiary of listed company should have Internal Audit System?
04 February 2009
Yes subsidiary should have an internal audit system if is a subsidiary of a listed company and any of the above conditions are satisfied ie turnover or net owned funds.
CAclubindia
