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Internal audit by ca /cma

R Srinivasan (Costing) (60 Points)

24 March 2016

As per Comapnies Act 2013, Internal Auditor is to be appointed for listed companies etc . He can be a CA/ CMA . Is COP also required or CA/CMA qualification( without holding COP) will do ?

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7 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 24 March 2016

Since internal auditor may be an employee of the company, COP may not be mandatory.

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R Srinivasan (Costing) (60 Points)
Replied 24 March 2016

Thanks for the reply. If the CA/CMA is not an employee, should he have COP to be appointed as internal uditor ? The Companies Act mentions about a "qualified " professional and it does not explicitly say that he should have COP. Can this point be clarified ?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 24 March 2016

As I understand, COP is not given to a person who is employed

Varun Jain (CA, B.com ) (392 Points)
Replied 25 March 2016

IN DEFINITION INTERNAL AUDITOR CAN BE A ANY OTHER PROFESSIONAL AS BOARD MAY DECIDE. SO AS PER LANGUANGE HE MAY NOT NECESSARY TO BE A COP HOLDER CHARTERED ACCOUNANT.

Surya Prakash Bharunt (Service) (88 Points)
Replied 29 June 2016

A CPT fail guy can also be a internal audit, only the Management has the discretion to deside whether he is fit or not.

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CA. Karthik Reddy MNS (Practicing Chartered Accountant) (92 Points)
Replied 01 July 2016

Surya Prakash Bharunt is rightly said.As per section 138 of Companies Act,internal auditor may be a CA/CMA or any other proffessional as Board may decide.Further a CA shall be appointed as internal auditor whether he is holding COP or not.