Internal Audit is compliance test which has been compulsory under section 138 of Companies Act 2013.
As per section 138 of companies Act 2013 and rule 13 of the companies Rules 2014 .following class or classes of companies shall required to appoint internal Auditor for conducting Internal Audit.
1.All listed companies
2.All public companies who full fill the following condition.
a) All Public companies whose turnover in last preceding F.Y 200cr or more.
b)All Public companies whose Paid-up share capital is more than 50cr or more.
c)All Public companies whose O/s loan from bank and financial institution at any time during preceding F.y is more than 100cr or more.
d)All Public companies whose O/s deposited at any time during last preceding year is more than 25cr or more.
3.All Pvt. companies who full fill the following condition.
a)All Pvt.ltd companies whose turnover in last preceding F.y is 200cr or more.
b)All Pvt.ltd companies whose O/s loan from bank and Public financial institution is 100cr or more in last preceding f.y
Who can conduct the Internal Audit?
Internal Audit can be conducted by the Qualified Chartered accountant(whether practice or not) Cost accountant or any other professional as may be appointed by the Board in this regard.
Can an Internal Auditor be an employee of the company?
Internal auditor May or may not be an employee of the company.
Prepare Audit engagement Plan(SA 210)
Check all the expense invoices and confirm that approved by the higher authority
Check all the compliances which are applicable to client/companies have been fully complied
Prepare proper documentation for Audit proof (SA 230)
Physically check the Inventories records.
Check all the Debtor and Creditor ledger.