Internal audit is applicable to every company. Comment.

Applicability of Internal Audit The concept of the Internal Audit has been recognized as a statutory requirement under Section 138 of the Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rule, 2014, and has been made mandatory on the following class of companies: (a) every listed company; (b) every unlisted public company having- i. paid up share capital of fifty crore rupees or more during the preceding financial year; or ii. turnover of two hundred crore rupees or more during the preceding financial year; or iii. outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or iv. outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and (c) every private company having- i. turnover of two hundred crore rupees or more during the preceding financial year; or ii. outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year. These companies are required to appoint an internal auditor which may be either an individual or a partnership firm or a body corporate.