Companies act : appointment of internal auditor
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 December 2018
Hi All,
As per section 138 of Indian Companies Act 2013 read with Rule 13 Of Companies (Accounts) Rules, 2014, certain class of companies are required to appoint Internal Auditors first condition being turnover exceeding INR 200 crores during preceding financial year.
It's not very clear whether this section will still be applicable if the turnover falls below cut off .Please advice.
Example - 2017- 18 : turnover = INR 250 crores , so the company is mandatorily required to appoint internal auditor on its payroll before 30th september 2018.
Now , in 2019-20 : turnover = INR 100 crores( assuming) , will the company still be required to employ internal auditor on its payroll ? Or every year the appoint is subject to the the realised turnover ?
Thanks
As per section 138 of Indian Companies Act 2013 read with Rule 13 Of Companies (Accounts) Rules, 2014, certain class of companies are required to appoint Internal Auditors first condition being turnover exceeding INR 200 crores during preceding financial year.
It's not very clear whether this section will still be applicable if the turnover falls below cut off .Please advice.
Example - 2017- 18 : turnover = INR 250 crores , so the company is mandatorily required to appoint internal auditor on its payroll before 30th september 2018.
Now , in 2019-20 : turnover = INR 100 crores( assuming) , will the company still be required to employ internal auditor on its payroll ? Or every year the appoint is subject to the the realised turnover ?
Thanks
CS Mitesh Mehta
(Expert)
26 December 2018
Not require to appoint internal auditor
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
