hello!!!!
i want to know whether internal control systems are mandatory!!! plz dont give reference of audit commitee u/s 292A. leaving it whether a company has to employ internal control systems???
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......
CAclubindia
