CA Inter P5 · Chapter 11 · Question 12 of 13
The board of Ekta Pharma Ltd. requests its statutory auditor, Sinha & Co., to also conduct its internal audit. Under section 144 of the Companies Act, 2013:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Sinha & Co. cannot provide internal audit services to the company, whether directly or indirectly
Explanation
Section 144 prohibits an auditor from rendering certain services to the company, its holding or subsidiary, directly or indirectly, including accounting and book-keeping, internal audit, design and implementation of financial information systems, actuarial, investment advisory, investment banking, outsourced financial services and management services. Providing them through an associated firm is also covered as 'indirectly'.
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