CARO - Internal Audit Clause

This clause is applicable to all listed companies irrespective of the size and turnover.
Non listed companies had to satisfy the conditions so as to attract the applicability of this clause.

By B.Chakrapani warrier in Query section.

thanks:)

thanks:)

For applicability plz find the condition from books. However CARO nt compulser internal audit to any company, it just ask abt the internal audit is implemented or not.

The Applicability of Internal Audit, no where mentioned in the Companies act, 1956, but it is only a requirement of CARO, 2003 on which the statutory auditor (s) of those companies on which the CARO ,2003 is applicable is required to give the disclosure in his report about the compliance of the Internal Audit as required by the para VII of the said Order, hence non compliance of the said requirement by the company would be a qualification in the auditors report.

Now, from the above it is very clear that the requirement of Internal Audit is applicable on those companies on which the CARO, 2003 is applicable.

CA. Bal Mukund Chaturvedi

New Delhi.

Sorry i m not agree as the disagreement with every clause in CARO not resulted in qulification. It just inquiry abt some point which can not affect true & fair view. As implementation of internal audit is not affect true & fair view so not resulted in qulification.

100% agree with Garg!

Hi....I want all details about Internal Audit that is useful for practical use

        I.            As per section 581ZF of companies act 1956. INTERNAL AUDIT : Every Producer Company shall have internal audit of its accounts carried out, at such interval and in such manner as may be specified in articles, by a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Institute of Chartered Accountants Act, 1949 (38 of 1949)

Is it true that newly formed unlisted compant having paid-up capital not exceeding 50 lakh rupees but having turnover more than 5 crore rupees need not implement intenal audit for initial 3 F.Y ?

Unlisted Comapnies whose Average Annual Turnover exceeding Rs.5Cr for 3 Consecutive financial years Preceding FY should have Internal Audit System.

Even though it has not been satisfied the prescribed criteria in respect of Paidup Capital & Reserves.

Satisfying any one of the condition is Sufficient.