Dear all, i see that most of the firms esp big4 employs b.c

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 Dear all,

i see that most of the firms esp Big4 employs B.com graduates (cost benefit) to do Internal Audit for companies (MNC/Listed/etc. They also do have CA's.

I understand that Statutory Audit needs to be conducted only by a qualified CA. Why not this is applicable for Internal Audit conducted.

Being a B.com they lack competence and skills these remain unknown to clients and presume they are CA aswell.

Should ICAI come up with a regulation or stating who is certified to be called as Internal Auditor first of all and the qualification one requires.?

Also if Internal Audit can be executed by anyone like Graduates / MBA then why become a CA...?

I need suggestion as to how this can be taken forward.

Thanks Indeed!
Regards

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)

11 August 2011 In most of the cases internal audit is not compulsory and also in cases where it is compulsory due to Company Law or CARO, there is no specific requirement in the act that it should be done by a CA.

I also agree with you that it decreases the credibility of the audit.

But as internal audits are not governed by any law therefor it is done by non-Ca's also.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 Thanks for your reply.
should then a governing body be established like International Bodies or ICAI can be recommended for IA certification.

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