Internal audit

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KALYANA SUNDARAM.T.V. (Querist)
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10 May 2012 Is it mandatory for the private limited company to have a internal auditor?

If so what are all the criteria to be fulfilled.

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Ajay Mishra

Ajay Mishra (Expert)
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10 May 2012 Hi

IF CARO Applicable then difinetely Internal Auditor required appointment.
Companies Act is silent. Even the mandate of CARO is limited only to a report from the Auditors, whether in the case of listed companies and/or other companies having a paid-up capital and reserves exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit system commensurate with its size and nature of its business;

A private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year.

Now a private limited Company, in order to be exempt from the applicability of the Order, must satisfy all the conditions at any point of time during the financial year.

Regards