Whether Cross Buildcon Ltd. is required to appoint an internal auditor for the financial year 2024-25.
CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · September 2025
Whether Cross Buildcon Ltd. is required to appoint an internal auditor for the financial year 2024-25.
Suggested Answer and Working Notes:
In the case of Cross Buildcon Ltd., the company has a paid-up share capital of 48crores, a turnover of 198crores, outstanding borrowings from a bank amounting to 110 crores, and outstanding deposits of 30crores as per the financial year 2023-24. Although the paid-up capital and turnover are below the prescribed thresholds, the outstanding borrowings and deposits exceed the specified limits under Rule 13 of the Companies (Accounts) Rules, 2014. Therefore, Cross Buildcon Ltd. is mandatorily required to appoint an internal auditor for the financial year 2024–25.
Topics: Internal Audit
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