LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Criteria for Internal Audit

Shivshankar (a c.a student) (229 Points)

24 August 2009

What is the criteria for the applicability of Internal Audit for a Company?

Reply
Follow
Share

7 Replies

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 25 August 2009

Applicability of Internal Audit System

􀀹

All listed companies

􀀹

Unlisted Companies with paid up share capital & free reserves >Rs. 50 lacs & Avg. annual turnover for last 3 yrs > Rs. 5 crs.

1 Like

Ujjwala Jain (CA) (22 Points)
Replied 25 August 2009

Sir, please specify under what section of law is this criteria being mentioned?

AADIL HAMZABHAI (Auditor) (26 Points)
Replied 26 October 2009

it is mentioned under CARO

Niharika Dubey (Article) (48 Points)
Replied 23 June 2010

Internal audit is mandatory for all listed companies and for other companies if:

1) The paid up capital and reserves are more than Rs 50 lacks as at the commencement of the financial year , or

2) Avg annual turnover exceeds Rs 5 crore for a period of three consecutive financial yrs immediately preceeding the financial year

1 Like

CA kanhaiya kumar (CA PASSED IN NOV.11 EXAM) (197 Points)
Replied 01 July 2010

where r u sunil

CA SUNIL KALRA (Senior Auditor) (34 Points)
Replied 30 April 2012

jz making an addition in the above answer,,,

There will be 3rd condition also dat the company must have o/s loan > 25lakhs.....

dan only internal audit is mandatory.....

Pls coreect if i am wrong....

CA Hardik Bunha (self) (2121 Points)
Replied 11 June 2012

EVERYONE IS RIGHT but one important point is missing.............

paid up capital and reserve and outsanding loan may vary from accounting period then which period will you consider for internal audit?

IN ANY OF THE AACCOUNTING YEAR(s) paid up capital and reserve exceeds limits specified from that accounting perioed to still company exists internal audit will be applicable.

HERE ALSO MISSING IS

ONLY PUBLIC COMPANY AND PRODUCER CAMPANY HAS MANDATORY INTERNAL AUDIT.

this limit is for private limited only. if private limited company has accepted PUBLIC DEPOSIT and do not exceed limit specified above still it is mandatory for internal audit....