internal audit system!!!!

The One Says:

Every company [b]has[/b] an "Internal Control System" (notice I have not said has to have). It may be referred to by different connotations or cognate expressions or not expressed at all but all entities have an internal control system. What is important is how well it is set up and complied with.

With reference to mandatory Internal Control System, you have to only look at CARO, 2003 which states a company should have a internal control system commensurate with the size of business and an internal audit system once the paid up capital and reserves exceed Rs.50 lakhs and average turnover last 3 years more than Rs. 5 crore.

Hope this is useful......

thanks for ur immense help...it would surerly be useful!!!!!!
ONE QUESTION.... HAS CARO  MADE IT MANDATORY?????

The One Says:

CARO deals with company auditor's report ..... so indirectly yes.

AS PER CARO

1ICS APPLICABLE 2 ALL LISTED COS

BUT 4 UNLISTED CO D CRITERIA IS

PUC+RES 50L OR ABOVE

OR

AVG T/O OF LAST 3YRS 5CR OR MORE....

HERE OR IS VERY IMP