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I can't understand the meaning of inhouse internal audit system and outsourcing . Please could you explain me in very simply.
Answers (2)
As per Sec 138 (1) of The Companies Act, 2013 read with Rule 13, the board of a company is required to appoint internal auditor which can either be an individual, firm or body corporate. In-house internal audit system, as the name suggests, is when the organisation chooses a competent and professional unit (person) among themselves that is internal to the company.. i.e., someone among themselves who is competent. Outsourced internal audit is when the organisation's internal audit function is carried out by an external service provider that is they ask an external party to perform their internal audit function.
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