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Internal audit

06 September 2016

Who can do Internal audit? Whether the internal auditor requires any specific qualification. Whether a CA (employee) can do internal audit of his employer company and others??

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(Guest)

no qualifications for internal auditor...he can be CA or CMA or any other board may decide who can do the functions of internal auditor..... see section 138

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ACA Anurag (Enjoy the little things) (14706 Points)
Replied 09 September 2016

Dear Nitish,

As per section 138 internal auditor may or may not be an employee of the company; The Audit Committee of the company or the Board shall, in consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit. However, the rule specifies that an internal auditor may or may not be an employee of the company. The Internal auditor may be a CA/CWA or any other professional. And also neither the rules nor the Act, has specified the duties and responsibilities. So even if the rules and act made the appointment of Internal Auditor mandatory, the same rules and Act provides option to companies to appoint any person as internal auditors. And also any one who has the knowledge can became an Internal Auditor, because the rules did not define the word “any other professional”

Hope your query is resolved

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