Appointment of internal auditor

Yes. It is very much possible as there is no such provision given in company law. Usually a board resolution is enough to appoint internal auditor.

If the terms of reference includes appointment of internal auditor by audit committee than it is very much possible.

Thanks

Ritu, you have not mentioned that whether it is the case of listed company or unlisted company. As far as unlisted company is concerned, there are not too much formality for the same.

But if there is a listed company then I think that we should take the board approval first through simple board resolution, becasue there are the no. of matters, no. of reports of internal auditor on which the statutory auditor have to rely. Further, we should be clear that what should be the role and responsibilities of intenal auditor either in the light of coporate governance- mandatory & non-mandatory requirments or in the general course. So for the listed companies, we should take the said step carefully.

Thanks

CS SOURABH GUPTA