Answer the following by explaining the provisions of the Companies Act, 2013 relating to 'internal audit': (i) Whether a private company is mandatorily required to appoint an internal auditor ?

Section 138 of the Companies Act, 2013 provides that 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 of Directors to conduct internal audit of the functions and activities of the company. According to Rule 13(1)(c) of the Companies (Accounts) Rules, 2014, every private company which satisfy either of the following conditions should mandatorily appoint an internal auditor: A company having turnover of ₹200 crore or more during the preceding financial year; or A company having outstanding loan or borrowing from banks or public financial institutions exceeding ₹100 crore or more at any point of time during the preceding financial year. (i) Therefore, a private company falling under any of the above criteria shall have to appoint an internal auditor.