15 March 2008
CARO stands for Companies Auditor's Report Order. If u go through CARO,2003, u will find to which companies it is applicable and u will also find the applicability of Internal audit in CARO itself
17 March 2008
Internal Audit is comuolsory for Compnies having turnover morethan specified limit. And According to CARO,2003 companies are required to give additional details as specified in format perscribed by the order. It shall apply to every company including a foreign company as defined in section 591 of the Act,except the following:-(i)a Banking company asdefined in clause (c) ofsection 5 of the Banking Regulation Act, 1949 (10 of1949);(ii) an insurance company as defined in clause (21) ofsection 2 of the Act;(iii) a company licensed to operate under section 25 ofthe Act; and(iv) a private limited company with a paid up capital and reserves not more than fifty lakh rupees and has notaccepted any public deposit and does not have loanoutstanding ten lakh rupeesor more from any bank or financial institution and does not have a turnoverexceeding five crore rupees.
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