Appointment of Internal Auditor

There are no formal qualifications for an internal auditor.

In case of a listed Company, appointment of an internal auditors falls within the purview of the Audit Committee being very much prominent from the reading of the terms of reference of the audit Committee as given in Clause 49 of the listing agreement.

However in case of an unlisted Company Sec 292A will more specifically come into picture and hence Companies having paid up capital of Rs. 5 crores or more shall be appointing the inetrnal auditor after consultation with the audit Committee.

After it is considered by the Audit Committee(AC) matter will be placed before the Board of Directors for their approval.

Board can appoint the IA for one year at a time and being renewed depending their quality of performance, reporting efficiency.,