is internal audit must for company ? is there any source for the that ? if yes tell me the process to appoint the internal auditor ?
txns.
is internal audit must for company ? is there any source for the that ? if yes tell me the process to appoint the internal auditor ?
txns.
Hi,
It is not compulsory for every company. But the applicability of CARO 2004 plays an important role regarding the applicability of appointment of internal auditor.
CARO 2004 requires the Auditor to comment upon the Internal Audit System in the case of all Listed Companies, and of companies which meet threshold limits.
However, it may be noted that the Companies Act does not contain a provision making the internal audit compulsory for any Company. CARO requires only to comment upon internal Audit System.
Trust the reply would be of some help.
Thanks
For appointment of internal auditor simply pass a board resolution. A subsequent noting of the appointment in the board minutes also sufficient.
Best Regards
CAclubindia
