Rohan Ltd., a public company is having a paid up capital ₹40 crore and a turnover of ₹490 crore. Advise whether the company is required to go for Internal Audit and briefly explain the areas that will come under within t

Requirement for Internal Audit: As per Section 138 of the Companies Act, 2013, read with Rule 13 of the Companies (Accounts) Rules, 2014, every unlisted public company having: Paid-up share capital of ₹50 crore or more during the preceding financial year; OR Turnover of ₹200 crore or more during the preceding financial year; shall be required to appoint an internal auditor or a firm of internal auditors to conduct an internal audit of the functions and activities of the company. In the given case, Rohan Ltd. is a public company with a paid-up capital of ₹40 crore and a turnover of ₹490 crore. Since its turnover (₹490 crore) exceeds the threshold of ₹200 crore, Rohan Ltd. is required to appoint an internal auditor . Rule 13 of the Companies (Accounts) Rules, 2014, also prescribes the manner and intervals in which the internal audit shall be conducted and reported to the Board. Scope of Internal Audit: The scope of internal audit should be determined by the Board of Directors of the company and typically includes: Audit of policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business. Adherence to the company's policies. Auditing of financial and non-financial transactions. Safeguarding of assets. Prevention and detection of frauds and errors. Accuracy and completeness of accounting records. Timely preparation of reliable financial information.