INTERNAL AUDITOR

[Sweety Rai]

Dear Sir/Madam,

Kindly suggest me can a company appoint other then CA /CS/CWA as a internal auditor of the company as per NCA, 2013 

& can we appoint COO as a internal auditor of the company

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   Regards

  Sweety Rai

Divya Jyoti Industries limited

Company secretary & Compliance Officer 

[Sweety Rai]

Hello Frnds,

if any one having the formate of BOD resolution for appointment of Internal Auditor PLZ mail me the SAME.

ITS URGENTLY Required 

[VIMAL SHARMA Compliance]

The Board took note of the recommendation of the Audit Committee for appointment of M/s ______, Chartered Accountants, as Internal Auditors for the financial year 2014-15. The Board approved the appointment of Internal Auditors and passed following resolution-

 “Resolved that, M/s __________, Chartered Accountants, be and are hereby appointed as the Internal Auditor of the company for the year 2014-15 at remuneration to be decided mutually between the Internal Auditor and the Managing Director of the Company.

 

Resolved further that Mr. __________,  Director of the company be and are hereby severally authorized to do all such acts as may be necessary.”

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[Sweety Rai]

its mandatory to appoint CA as the Internal Auditor as per Sec.138 Of NCA ,2013 any Professional who have knowledge of the can be appointed as internal Auditor of the Co.

PLZ classified me the same

[VIMAL SHARMA Compliance]

Yes, as per my understanding any professional can be a internal auditor. 

[Sweety Rai]

In my co. Chief Operating Officer who is professionally qualified bt he is the son of one of director of my co. can we appoint him as internal auditor , if any sec. applicable to same plz guide me 

[VIMAL SHARMA Compliance]

Refer Sec-188 ( office or place of profit)

[Sweety Rai]

Thnx sir,

 

[CS Shainshad Aduvanni]

any employee can also be Internal Auditor.

13. Companies required to appoint internal auditor.- (1) The following class of companies shall be required to appoint an internal auditor or a firm of internal auditors, namely:-

(a) every listed company;

(b) every unlisted public company having-
(i) paid up share capital of fifty crore rupees or more during the preceding financial year; or
(ii) turnover of two hundred crore rupees or more during the preceding financial year; or
(iii) 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; or
(iv) outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and

(c) every private company having-

(i) turnover of two hundred crore rupees or more during the preceding financial year; or
(ii) 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:
Provided that an existing company covered under any of the above criteria shall comply with the requirements of section 138 and this rule within six months of commencement of such section.

Explanation.- For the purposes of this rule –
(i) the internal auditor may or may not be an employee of the company;
(ii) the term “Chartered Accountant” shall mean a Chartered Accountant whether engaged in practice or not.
(2) The Audit Committee of the company or the Board shall, in consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit.

CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439

[Sweety Rai]

Dear Sir,

in dis sec. they give more focus on the Word "PROFESSIONAL QUALIFIED"

Further the expression “such other professional as may be decided by the Board”, used in Section 138 is very open. Even though other professionals like Company Secretaries can utilize the internal audit as a professional opportunity as an area of practice, the Companies Act 2013 lacks the definition of the term “professional”. Thus, if the Board of a company feels that the company’s internal audit is to be done by a Doctor / Engineer, will it satisfy the law ?. -

how dis possible to appoint any employee as Internal Auditor.

[VIMAL SHARMA Compliance]

Yes Internal Auditor can be in house team of employees as well

[Sweety Rai]

So Can we appoint B,com /M.com passout employee as Internal Audiotor

[Madhur Agrawal]

Absolutely yes.

[VIMAL SHARMA Compliance]

Yes subject to satisfaction of your Audit Committee and moreover Chairman of Audit Committee. Law does not bar them to be Internal Auditor

[K. Sankara Subramanian]

Whether appointment of Internal Auditor has to be done through Audit Committee?

Reading of S.138 ( "...as may be decided by the Board...") conveys that appointment through Board is sufficient.

On Thu, Jun 19, 2014 at 12:01 PM, Madhur Agrawal <madh...@gmail.com> wrote:

[VIMAL SHARMA Compliance]

Appointment will be done by Board only. However if u r a listed co. then it should be first recommended by Audit Committee.

Audit Committee to recommend appointment of auditors including internal auditors. refer new cl-49

[K. Sankara Subramanian]

Thank you Mr. Vimal.

[Sweety Rai]

Thanx Sir  for ur guideness.

[periwal...@gmail.com]

Dear all,

 

person to be appointed as Internal auditor shall be professional. its claerly mentioned there. How can you treat a simple graduate or post graduate as professional?

 

 

 

As regarding the lines in rules "An internal auditor may or may not be an employee of company"   . It simply means that an internal auditor may be appointed as an employee of company or may be appointed on contractual basis like statutory auditors.