Rule 13 - Companies required to appoint internal auditor

Internal auditor appointment required where companies meet prescribed thresholds; Audit Committee must define audit scope and methodology.

Companies meeting prescribed listing or size criteria must appoint an internal auditor (individual, partnership firm or body corporate). Listed companies, certain unlisted public companies and certain private companies are covered; existing companies must comply within six months of the relevant section's commencement. The internal auditor may be an employee or external appointee; 'Chartered Accountant' and 'Cost Accountant' include professionals whether in practice or not. The Audit Committee or Board, in consultation with the internal auditor, shall formulate the scope, functioning, periodicity and methodology of internal audit.