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Internal Audit

This query is : Resolved 

In which case/cases Internal Audit is compulsory for an organisation ?

One situation is:-
In the case of listed companies and/other companies having a paid up capital and reserve exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding Rs 5 crores for a period of 3 consecutive financial years immediately preceding the financial year concerned, there should be an internal audit system commensurate with the size and nature of the business of the company.

The above requirement is as per CARO, 2003.

agree with the experts

Agree with Mr. Warrier.
Section-292A also indirectly talks about Internal Audit System for every public company having a paid up capital of not less then Rs. 5 Crore...

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