CLL_Art1677 - Taxpublishers.in

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The Tax Publishers Companies Act, 2013--Internal Auditor Appointment of Internal Auditor CA. Deepak Harwani In the present article the learned author discusses various provisions in relation to Internal Audit of a Company under Section 138 of the Companies Act, 2013, along with applicable Companies Rules, 2014 relating to Appointment of Internal Auditor such as tenure, qualifications and eligibility to become the same. 1. Introduction The concept of internal audit system was introduced by the Government under the Companies Act, 2013, in order to streamline day-to-day operations of company to provide assurance regarding the effectiveness of internal controls and risk management systems, allowing the organization to meet organization goals. An internal auditor is, therefore, appointed by the company which reviews the Internal controls and processes of the organization and suggest measures to deal with the same. 2. Applicability of Internal Audit As per section 138 of the Companies Act, 2013 read with rule 13 of Companies, Rules 2014, Internal Auditor is to be appointed by following class of companies : SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Companies Act, 2013--Internal Auditor

Appointment of Internal Auditor

CA. Deepak Harwani

In the present article the learned author discusses various provisions in relation to Internal Audit of a Company under Section 138 of the Companies Act, 2013, along with applicable Companies Rules, 2014 relating to Appointment of Internal Auditor such as tenure, qualifications and eligibility to become the same.

1. Introduction

The concept of internal audit system was introduced by the Government under the Companies Act, 2013, in order to streamline day-to-day operations of company to provide assurance regarding the effectiveness of internal controls and risk management systems, allowing the organization to meet organization goals.

An internal auditor is, therefore, appointed by the company which reviews the Internal controls and processes of the organization and suggest measures to deal with the same.

2. Applicability of Internal Audit

As per section 138 of the Companies Act, 2013 read with rule 13 of Companies, Rules 2014, Internal Auditor is to be appointed by following class of companies :