CA Prashant Gupta (DGM (F & A)) (14068 Points)22 January 2013
(CA in service & CS. dipmaj@ rediffmail.com )
Replied 22 January 2013
The statutory auditor has to report in the audit report if internal audit system is coomensurate with the size of the company.
IA need not be an outside firm/agency. Need not be a CA. Even an employee can be IA.
IA is attracted if paid up capital and reserves exceed 50L at the commencement of FY or average annual turnovers of last 3 years exceed 5 crores.