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The Companies Act, 2013

Chapter IX - Accounts of Companies (128-138)

Section 138- Internal Audit.

[Notification Date: 26.03.2014; Effective from: 01.04.2014]

[Section 138 shall apply to the unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of  India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi services Special Economic Zone set-up under the Special Economic Zones Act, 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006 if the articles of the company provides for the same. -Notification G.S.R. 08(E) dated 04.01.2017]

Section 138- Internal Audit. [New Provision]; [Relevant Rule: 13 of The Companies (Accounts) Rules, 2014]

(1) Such class or classes of companies as may be prescribed - [Rule 13(1)] shall be required to appoint an internal auditor, who 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.

(2) The Central Government may, by rules, prescribe - [Rule 13(2)] the manner and the intervals  in which  the internal audit shall be conducted and reported to the Board.