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Resignation - internal auditor

Biji Joseph (PARTNER) (34 Points)

17 December 2011

Hi,

On what basis the Internal Auditor can resign?

What are the grounds of Company to terminate the agreement of Internal Audit?

Whether we should include these conditions in Engagement Letter? If yes pls provide a format..

Thanks

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Sunil (Internal Auditor) (334 Points)
Replied 17 December 2011

Dear Biji

Before entering into an agreement for internal audit of your company first of all you shoul have an idea about your requirements and the results you expected form the internal auditor. The following may be taken as a rough points in general.

You can require the IA to study and evaluate your internal control system
Finding the loop holes and suggesting corrective messures
Suggesting an internal control system if one is not in exist.
Verfication of Statutory compliances
Verification and analysis of Financial and Non Financial transactions in propriety angle
Fixing intervels in which audit has to be carried out
Volume/range of transactions which are to be compulsorily need checking.
Miniumum qualifications to be possessed by the audit staff and the required attendence of them
Cut off date with in which the audit has to be completed and report to be submitted.
Fees and other terms of the appointment

You can add events in which the appointment may be terminated by either of the party.

In my view there is no other statutory restrictions like in appointment of statutory auditor other than those in Indian Conrtact Act for the termination of agreement between Internal Auditor and client.

You may please take the view expressed by others also