The qualification and experience requirements for the positions of internal auditor

Q.The Non-Banking Finance Companies (Establishment & Regulation) Rules, 2003 specifies the qualification and experience requirements for the positions of internal auditor in non-banking finance companies. Describe the following in this regard:

(i) The qualification(s) applicable to internal auditors.

Ans: Qualification of internal auditors:

·  A Chartered Accountant

· A Cost and Management Accountant or a Certified Internal Auditor (CIA)

·  Certified Information System Auditor (CISA)

·   A member of a recognized foreign accountancy organization or

·   An individual having master’s degree in Commerce or Business Administration with specialization in finance.

(ii) The extent of experience required.

Ans: Minimum experience for the position of internal Auditor:

Minimum experience of three years is required.

(iii) To whom the internal audit functions can be outsourced?

Ans: Outsource of Internal Audit Function:

It can be outsourced to a chartered accountancy firm having satisfactory Quality Control Review (QCR) and not being the statutory auditors.