The Companies Act, 2013

Section 138 : Internal Audit

Internal Audit

138. (1) Such class or classes of companies as may be prescribed 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 the manner and the intervals in which the internal audit shall be conducted and reported to the Board.

Exceptions/ Modifications/ Adaptations

1. In case of Specified IFSC Public Company - Section 138 shall apply if the articles of the company provides for the same. - Notification Dated 4th January 2017.
2. In case of Specified IFSC Private Company - Section 138 shall apply if the articles of the company provides for the same. - Notification Dated 4th January 2017.