Criteria for Internal Audit

Applicability of Internal Audit System

All listed companies

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

it is mentioned under CARO

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

where r u  sunil

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....

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....