What Are the Criteria for Internal Audit Services for Appointment?
For conducting internal audits inside the companies, many organizations appoint internal auditors as per Section 138 of the Companies Act. The goal of hiring an internal auditor is to evaluate the activities and functions of the company. To become an internal audit service provider, one has to be a chartered accountant or a cost accountant or anyone related to similar kinds of professions. There is a particular method of hiring internal auditors in companies. Today, we are going to discuss that for your benefits.
What Are the Eligibility Criteria to Become an Internal Auditor?
Internal auditors are those who provide internal auditing services to a company after being appointed by it. It is the duty of the board of directors who appoint the internal auditors for regulating and monitoring the activities of the company. Here are the following criteria on the basis of which the companies appoint the internal auditor-
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Any listed companies
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Any unlisted public companies
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The paid-up share capital is of Rs. 50 Crore or above for the preceding financial year
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The annual turnover of income should be Rs. 200 Crores or above in the preceding financial year
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Any kind of borrowing or loans from banks or any other financial institutions should be Rs. 100 Crores or more than that during the preceding financial year
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The deposition amount should be Rs. 25 Crores or above in the preceding financial year.
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If the private companies have
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Yearly turnover from income of Rs. 200 Crores or above in the preceding financial year
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Loans or borrowing from other banks or financial institutions of Rs. 100 Crores or above than that during the preceding financial year.
What Are the Duties and Responsibilities of Internal Audit Services?
If you are planning to get appointed as an internal auditor, you need to be aware of the duties and responsibilities of the post. Read on to know more-
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Evaluating the corporate governance system and risk management system so that the organization finds it easy to meet the goals it has set for itself.
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The auditor is responsible for issuing reports of risk management and controlling deficiencies. Besides that, the internal auditor provides information and guidelines which can be used for the entire betterment of the organization.
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It is the duty of the internal auditor to evaluate risk exposures and security threats to the information of the organization.
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They also evaluate programs related to regulatory compliance.
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They check out how the organization is prepared if there are any interruptions towards the business of it.
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For staff development and making the employees more advanced and suitable for the organization, they arrange workshops and seminars.
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They are also responsible for maintaining the anti-fraud cell of the organization.
Process of Appointing an Internal Auditor
To appoint an internal auditor, the candidate must pass a Board Resolution. Before the appointment, the members of the Board should elaborate the terms and conditions of appointment.
