# Auditor Not to Render Certain Services — Section 144
## Core Idea
An auditor appointed under the Companies Act shall provide to the company only such services as are approved by the Board of Directors or the Audit Committee. However, the section expressly prohibits the auditor from rendering certain services to the company, its holding company or subsidiary company — whether directly or indirectly.
## Prohibited Services (Negative List)
1. Accounting and book-keeping services
2. Internal audit
3. Design and implementation of any financial information system
4. Actuarial services
5. Investment advisory services
6. Investment banking services
7. Rendering of outsourced financial services
8. Management services
9. Any other service as may be prescribed
## Meaning of 'Directly or Indirectly'
The term 'directly or indirectly' for the purpose of this section shall include rendering of services by the auditor:
| If auditor is an individual | If auditor is a firm |
|---|---|
| Himself | Itself |
| Through his relative | Through any of its partners |
| Through any other person connected or associated with such individual | Through its parent / subsidiary / associate entity |
| Through any other entity in which such individual has significant influence or control, or whose name or trademark or brand is used by such individual | Through any other entity in which the firm or any partner has significant influence or control, or whose name or trademark or brand is used by the firm or any of its partners |
## Transitional Provision
An auditor or audit firm who, before commencement of the Act, was rendering any of the above services to the company, may continue till the closure of the first financial year after such commencement, and thereafter shall not render such services.
## Linkage with Section 141 (Disqualifications)
Rendering of any prohibited service results in disqualification under Section 141 — and the auditor shall vacate office. Vacancy so caused is a casual vacancy.