Internal Audit is a vital process carried out to evaluate the internal controls, accounting processes, and operational efficiency of an organization. While some companies voluntarily conduct it, for others it is mandatory under the **Companies Act, 2013**, based on thresholds set by the Ministry of Corporate Affairs (MCA). Internal audits ensure better governance and risk management.
Internal Audit is a proactive approach to keep businesses compliant and controlled. It ensures:
As per Rule 13 of the Companies (Accounts) Rules, 2014, Internal Audit is mandatory for: