B Com Exam > B Com Notes > Company Law > Internal Audit(Section 138) - Dividends & Audit, Company Law
Internal Audit(Section 138) - Dividends & Audit, Company Law | Company Law - B Com PDF Download
Internal Audit (Section 138)
There was no provision under the Companies Act, 1956 for Internal Audit. Section 138 of the Companies Act, 2013 came into force from 1st April, 2014 which provides for it. According to Section 138 of the Companies Act, 2013 and the Companies (Accounts) Rules, 2014:
(a) Companies required to appoint Internal Auditor
(1) The following class of companies shall be required to appoint an internal auditor which may be either an individual or a partnership firm or a body corporate [As amended vide notification no. G.S.R. 742(E ) dated 27th July, 2016], namely:
(a) every listed company.
(b) every unlisted public company having:
- Paid up share capital of Rs 50 crore or more during the preceding financial year, or
- Turnover of ` 200 crore or more during the preceding financial year, or
- Outstanding loans or borrowings from banks or public financial institutions exceeding Rs 100 crores or more at any point of time during the preceding financial year, or
- Outstanding deposits of Rs 25 crore or more at any point of time during the preceding financial year, and
(c) every private company having:
- Turnover of Rs 200 crore or more during the preceding financial year, or
- Outstanding loans or borrowings from banks or public financial institutions exceeding Rs 100 crore or more at any point of time during the preceding financial year.
(2) The Audit Committee of the company or the Board shall, in consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit.
(b) Transitional period
An existing company covered under any of the above criteria shall comply with the requirements of Section 138 and this rule within 6 months of commencement of such Section.
(c) Who is Internal Auditor
- Internal Auditor shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company. Here, the term Chartered Accountant shall mean a Chartered Accountant whether engaged in practice or not.
- The internal auditor may or may not be an employee of the company.
The document Internal Audit(Section 138) - Dividends & Audit, Company Law | Company Law - B Com is a part of the B Com Course Company Law.
All you need of B Com at this link: B Com
|
81 docs|44 tests
|
FAQs on Internal Audit(Section 138) - Dividends & Audit, Company Law - Company Law - B Com
| 1. What is the role of internal audit in relation to dividends and audit? |  |
Ans. The role of internal audit in relation to dividends and audit is to review and evaluate the company's internal controls and processes related to the declaration and payment of dividends. This includes assessing the accuracy and completeness of dividend calculations, ensuring compliance with legal and regulatory requirements, and identifying any potential risks or errors in the dividend distribution process.
| 2. What are the key responsibilities of an internal auditor regarding dividends and audit? | |
Ans. The key responsibilities of an internal auditor regarding dividends and audit include verifying the accuracy of dividend calculations, reviewing dividend policies and procedures, assessing compliance with company law and regulatory requirements, evaluating the effectiveness of internal controls over the dividend distribution process, and identifying any potential risks or fraud related to dividends.
| 3. How does company law impact the auditing of dividends? | |
Ans. Company law sets out the legal requirements and guidelines for the declaration and payment of dividends. As part of the audit process, the internal auditor needs to ensure compliance with these legal requirements. This includes verifying that dividends are declared and paid in accordance with the company's articles of association, ensuring proper authorization for dividend payments, and confirming that the company has sufficient retained earnings or profits available for distribution as dividends.
| 4. What are the potential risks and challenges in auditing dividends? | |
Ans. Some potential risks and challenges in auditing dividends include the risk of inaccurate dividend calculations, failure to comply with legal and regulatory requirements, lack of proper documentation and authorization for dividend payments, misclassification of dividend payments, and potential fraud or misuse of funds in the dividend distribution process. Internal auditors need to be vigilant in identifying and addressing these risks to ensure accurate and lawful dividend payments.
| 5. How can internal auditors contribute to improving the dividend distribution process? | |
Ans. Internal auditors can contribute to improving the dividend distribution process by conducting regular audits to identify and address any weaknesses or deficiencies in the processes and controls related to dividends. They can also provide recommendations for enhancing internal controls, streamlining procedures, and ensuring compliance with company law and regulatory requirements. By identifying and addressing these areas of improvement, internal auditors help enhance the accuracy, efficiency, and integrity of the dividend distribution process.
Related Exams
About this Document
|
4.85/5 Rating |
|
Nov 15, 2024 Last updated |
Document Description: Internal Audit(Section 138) - Dividends & Audit, Company Law for B Com 2024 is part of Company Law preparation.
The notes and questions for Internal Audit(Section 138) - Dividends & Audit, Company Law have been prepared according to the B Com exam syllabus. Information about Internal Audit(Section 138) - Dividends & Audit, Company Law covers topics
like and Internal Audit(Section 138) - Dividends & Audit, Company Law Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Internal Audit(Section 138) - Dividends & Audit, Company Law.
Introduction of Internal Audit(Section 138) - Dividends & Audit, Company Law in English is available as part of our Company Law
for B Com & Internal Audit(Section 138) - Dividends & Audit, Company Law in Hindi for Company Law course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Internal Audit(Section 138) - Dividends & Audit, Company Law | Company Law - B Com
Description
Full syllabus notes, lecture & questions for Internal Audit(Section 138) - Dividends & Audit, Company Law | Company Law - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Company Law | Best notes, free PDF download
Information about Internal Audit(Section 138) - Dividends & Audit, Company Law
In this doc you can find the meaning of Internal Audit(Section 138) - Dividends & Audit, Company Law defined & explained in the simplest way possible. Besides explaining types of
Internal Audit(Section 138) - Dividends & Audit, Company Law theory, EduRev gives you an ample number of questions to practice Internal Audit(Section 138) - Dividends & Audit, Company Law tests, examples and also practice B Com
tests
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Previous Year Questions with Solutions
,video lectures
,Objective type Questions
,Internal Audit(Section 138) - Dividends & Audit
,Internal Audit(Section 138) - Dividends & Audit
,Viva Questions
,mock tests for examination
,Semester Notes
,Important questions
,study material
,practice quizzes
,Extra Questions
,ppt
,past year papers
,Exam
,Sample Paper
,Free
,Company Law | Company Law - B Com
,Company Law | Company Law - B Com
,Company Law | Company Law - B Com
,Internal Audit(Section 138) - Dividends & Audit
,MCQs
,Summary
,shortcuts and tricks
;
Additional Information about Internal Audit(Section 138) - Dividends & Audit, Company Law for B Com Preparation
Internal Audit(Section 138) - Dividends & Audit, Company Law Free PDF Download
The Internal Audit(Section 138) - Dividends & Audit, Company Law is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Internal Audit(Section 138) - Dividends & Audit, Company Law now and kickstart your journey towards success in the B Com exam.
Importance of Internal Audit(Section 138) - Dividends & Audit, Company Law
The importance of Internal Audit(Section 138) - Dividends & Audit, Company Law cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Internal Audit(Section 138) - Dividends & Audit, Company Law Notes
Internal Audit(Section 138) - Dividends & Audit, Company Law Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Internal Audit(Section 138) - Dividends & Audit, Company Law.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Internal Audit(Section 138) - Dividends & Audit, Company Law Notes on EduRev are your ultimate resource for success.
Internal Audit(Section 138) - Dividends & Audit, Company Law B Com Questions
The "Internal Audit(Section 138) - Dividends & Audit, Company Law B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Internal Audit(Section 138) - Dividends & Audit, Company Law on the App
Students of B Com can study Internal Audit(Section 138) - Dividends & Audit, Company Law alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Internal Audit(Section 138) - Dividends & Audit, Company Law,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Internal Audit(Section 138) - Dividends & Audit, Company Law is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup