Internal Audit
📚 Law Minded summary
Prescribed classes of company must appoint an internal auditor — a chartered accountant, cost accountant, or another professional the Board decides on.
The internal auditor checks the company's own systems and controls as it goes along, which is a different job from the statutory audit at the end of the year.
(1) Such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company.
(2) The Central Government may, by rules, prescribe the manner and the intervals in which the internal audit shall be conducted and reported to the Board. CHAPTER X AUDIT AND AUDITORS