A STUDY OF INTERNAL AUDIT PRACTISED IN MODERN BUSINESS ENTERPRISES

In India, appointment of internal auditor has been made mandatory for listed and certain otherclasses of companies by the Companies Act 2009. This is an inflexion point for the internal audit as thenew provision gives an opportunity to internal auditors to claim their rightful position in companies bystrengthening their relationship with the audit committee of the board of directors (Board). However,achieving recognition as a valuable function also requires providing services that are needed by the Boardto enable it to play an effective role in corporate governance. Contemporary internal audit serves both themanagement and the Board. This paper examines the scope of internal audit.