Internal Audit Under Section 138 Of Companies Act 2013

Internal Audit under Section 138 of Companies Act, 2013: The internal audit assesses a company’s interior control, inclusive of its corporate governance and accounting methods. These audits pledge compliance with laws and regulations and help to maintain precise and timely financial reporting and data collection.

According to Section 138 of the Indian Companies Act, 2013, Along with Rule 13 Of Companies (Accounts) Rules 2014
A particular specific class requires the appointment of Internal Auditors of companies. An excerpt of Rule 13 of Companies (Accounts) Rules, 2014 is mentioned below-

“13. Companies required to appoint internal auditor”: The companies which are required to appoint or hire an intern

(a) Every listed company – Always applicable

(b) Every unlisted public company

During the prior fiscal year, Paid-up share capital is fifty crore rupees or more.
During the prior fiscal year, turnover income is two hundred crore rupees or more.
Borrowings from public financial institutions or banks during the prior fiscal year exceed the amount of one hundred crore rupees or higher at any point in time.
Outstanding deposits during the prior fiscal year are twenty-five crore rupees or more at any point in time.
(c) All unlisted private company

turnover is of two hundred crore rupees or higher during the prior fiscal year
Borrowings from banks or any public financial institutions exceed the margin of one hundred crore rupees or higher at any point in time through the previous fiscal year.
That any existing company coming under any of the conditions mentioned above will comply with the necessities of section 138 and the said rule within six months of the foundation of such section.