“The following class of companies shall be required to appoint an internal auditor as per section 138 of companies act 2013-
(a) Every listed company;
(b) Every unlisted public company if satisfy any of the criteria prescribed under Companies Act 2013.. Read complete provisions at TaxGyata”
Internal audit refers to the process of evaluation of an organization's internal controls, practices, processes, and methods. The objective of an internal audit is to check the effectiveness of operational standards framed by an organization. It is either performed by the employee of an organization or a professional, as appointed by the Board of directors.
Internal audit applicability
Section 138 read with Rule 13 of the Companies (Accounts) Rules 2014, provides for internal audit in specified companies. The following companies shall be required to appoint an internal auditor-
(a) Every listed company;
(b) Every unlisted public company if satisfy any of the criteria given as under-
paid-up share capital of fifty crore rupees or more during the preceding financial year
turnover of two hundred crore rupees or more during the preceding financial year
outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year
outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and
(c) Every private company if satisfy any of the criteria given as under-
turnover of two hundred crore rupees or more during the preceding financial year; or
outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year:
