BooksIQInternal audit is MANDATORY for every LISTED company, and for prescribed unlisted public / private companies. Unlisted PUBLIC: paid-up ≥ ₹50 Cr OR turnover ≥ ₹200 Cr OR borrowings ≥ ₹100 Cr OR deposits ≥ ₹25 Cr. PRIVATE: turnover ≥ ₹200 Cr OR borrowings ≥ ₹100 Cr (any one, in the preceding FY).
Key points
- §138 read with Rule 13 of the Companies (Accounts) Rules 2014 requires the following companies to appoint an INTERNAL AUDITOR (a CA or Cost Accountant — in practice or employed — or such other professional decided by the Board;
- need not be the statutory auditor): (a) every LISTED company;
- (b) every UNLISTED PUBLIC company having, during the preceding FY, paid-up share capital ≥ ₹50 CRORE, OR turnover ≥ ₹200 CRORE, OR outstanding loans/borrowings from banks or PFIs ≥ ₹100 CRORE at any point, OR outstanding deposits ≥ ₹25 CRORE at any point;
- (c) every PRIVATE company having, during the preceding FY, turnover ≥ ₹200 CRORE, OR outstanding loans/borrowings from banks or PFIs ≥ ₹100 CRORE at any point.
- The Board (in consultation with the internal auditor) formulates the SCOPE, functioning, periodicity and methodology.
- An existing internal-audit function may continue.
- The internal auditor may be an individual, a partnership firm, or a body corporate.
Reference: §138 Companies Act 2013 read with Rule 13 of Accounts Rules 2014
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
current position with a qualified professional before you act.
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