"The role of audit committee on oversight of internal audit functions of a listed company is wider than the requirements of Companies Act, 2013". Explaining which companies are required to constitute an audit committee a

Every listed company and every public company with a paid-up capital of ₹10 crore or more or turnover of ₹100 crore or more or outstanding loans of ₹50 crore or more is required to constitute an Audit Committee under section 177 of the Companies Act, 2013. Every listed company and every unlisted public company having a paid-up capital of ₹50 crore or more or turnover of ₹200 crore or more or outstanding loans of ₹100 crore or more or outstanding deposit of ₹25 crore or more is required to appoint an internal auditor under section 138 of the Act read with Rule 13 of Companies (Accounts) Rules, 2014. Private companies with a turnover of ₹200 crore or more or outstanding loans of ₹100 crore or more are also required to appoint an internal auditor. The role of audit committee of a listed company is prescribed under Part C of Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audit committee of a listed company shall evaluate the internal financial controls and risk management systems as per section 177 of the Companies Act, 2013 and the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 [SEBI (LODR) Regulations]. In addition, the SEBI (LODR) Regulations, 2015 requires that the audit committee shall review the structure of the internal audit department, staffing, scrutiny of officials handling the internal audit department, reporting structure and frequency of conducting internal audits. Thus, the role and scope of internal audit function in a listed company is much wider than the requirements of the Companies Act, 2013.