DOX Limited, a service provider company engaged in providing courier services pan-India as well as internationally, has appointed an internal…

CA Intermediate · Auditing and Ethics · MTP · May 2024
DOX Limited, a service provider company engaged in providing courier services pan-India as well as internationally, has appointed an internal auditor, Mr. G, in accordance with requirements of the Companies Act, 2013 during financial year 2023-24. The company's annual turnover during year 2022-23 and 2023-24 has been about 300 crores during each of above years. Business of the company has been profitable. Mr. G heads internal audit department of the company assessing governance activities, assisting in improving risk management activities and reviewing controls. Discuss reporting responsibility of statutory auditor of the company under the Companies Act, 2013 specifically in relation to internal audit and related matters for the year 2023-24.

Suggested Answer and Working Notes:

(a) DOX Limited is in business of providing courier services. As name of the company and given facts suggest: It is not a small company under section 2 (85) of Companies Act, 2013.It is not a private company.It is not a one person company.It is not a banking or insurance company.It is not a Section 8 company as it does not has charitable objects etc. Therefore, it does not qualify for any exemption from applicability of CARO, 2020. Hence, reporting requirements under CARO, 2020 are applicable. While reporting under CARO, 2020, statutory auditor is required to report under clause (xiv) of paragraph 3 as under: (a) whether the company has an internal audit system commensurate with the size and nature of its business (b) whether the reports of the internal auditors for the period under audit were considered by the statutory auditor

Topics: Audit Report

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic