Question

The internal audit is ______________.

• A. mandatory
• B. mandatory in certain cases
• C. compulsory
• D. not mandatory

Answer 1

Answer: (B)

mandatory in certain cases

Internal audit is mandatory for listed (Public or private) companies.

Also, note the following:

Public Unlisted Company: Internal Audit is mandatory if Turnover is Rs. 200 crore or more, Borrowings is equal to Rs.100 crore or more, paid up share Capital is Rs.50 crore or more, Deposits Rs. 25 crore or more.

Private Unlisted Company: Internal audit is mandatory if Turnover is Rs. 200 crore or more and/or Borrowings is Rs.100 crore or more.