Section 138 — Internal Audit
Section 138 Companies Act 2013 explained: which companies must appoint an internal auditor, who qualifies, and key thresholds for CA Inter e
Paper 5 — Auditing & Ethics · Chapter
Company Audit (Companies Act 2013, ss 138–148)
Companies Act 2013 sections 138–148 — internal audit, appointment, removal, qualifications/disqualifications, powers and duties of auditors, auditor's report, prohibited services, branch audit and cost audit. Expect 12–14 marks.
11 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 139 — Appointment of Auditors
Section 139 Companies Act 2013 explained: auditor appointment terms, mandatory rotation for listed companies, first auditor rules & CAG role
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3
Section 140 — Removal, Resignation of Auditor
Section 140 Companies Act 2013 explained: removal needs special resolution + CG approval; resignation requires filing within 30 days or face
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4
Section 141 — Eligibility, Qualifications & Disqualifications of Auditor
Section 141 Companies Act 2013: Who can be auditor in India? Qualifications, 9 disqualifications, 20-company limit & post-appointment vacati
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5
Section 142 — Remuneration of Auditors
Section 142 Companies Act 2013: who fixes auditor remuneration, what's included (fees + expenses + facilities), and the first-auditor except
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6
Section 143 — Powers and Duties of Auditors and Auditing Standards
Section 143 Companies Act 2013: auditor's powers of access, audit report duties, CAG supplementary audit (60 days), branch audit rules — exp
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7
Section 144 — Auditor Not to Render Certain Services
Section 144 Companies Act 2013: Services auditors cannot provide to their audit clients — the complete prohibited list with examples for CA
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8
Section 145 — Auditor to Sign Audit Reports, etc.
Section 145 Companies Act 2013: who signs the audit report and why adverse remarks must be read at AGM — explained for CA Inter May 2026.
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9
Section 146 — Auditors to Attend General Meeting
Section 146 Companies Act 2013: auditor's right to attend general meetings, send a qualified representative, and be heard — key CA Inter exa
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10
Section 147 — Punishment for Contravention
Section 147 Companies Act 2013: penalties for audit violations — company fines, auditor fines (4×/8× remuneration cap), imprisonment for wil
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11
Section 148 — Central Government to Specify Cost Audit
Section 148 Companies Act 2013: Cost audit rules for CA Inter — who appoints cost auditor, 30-day filing deadline, penalties explained simpl
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