Who can be an Internal Auditor of a Private Limited Company

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For private limited companies where Section 138 applies, an internal auditor must be appointed. While professional qualifications like CA, CWA, or CS are generally required, the Board of Directors ultimately decides on the appointment based on Rule 1 of the Companies (Accounts) Rules, 2014. Consultation with the statutory auditor is not necessary for this decision.

SUDHEEP M

SUDHEEP M (Querist)
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26 May 2023 Sir,

In case of Provisions of section 138 was applicable to a private limited company, accordingly internal auditor was liable to be appointed. Who can be eligible to be appointed as an internal auditor. Whether any qualification such as CA or CWA is required or a graduate having sufficient experience can be appointed as an internal auditor. Please provide clarity?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 May 2023 Qualification such as CA or CWA or CS is required.
In case of other professional consult your statutory auditor.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 May 2023 Internal auditor should be a professional per section 138(1).No need to consult with Statutory Auditor. Board of Directors has to decide such appointment. Inference - Rule 1 of Companies (Accounts) Rules,2014.

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