Ranveer, Chief Financial Officer (CFO) of the company has made the following observations with respect to the appointment of an internal auditor. Particulars Observations made by Ranveer Existing employee of the company

As per the provisions of section 138 of the Companies Act, 2013 the correct answer is as under: Particulars Observations made by Ranveer Legality of the observation Existing employee of the company who is a Chartered Accountant having experience of doing internal audit in past Cannot be appointed As per section 138, a Chartered Accountant is eligible to be appointed as internal auditor. Hence, He can be appointed. Association of Chartered Accountants, Azad Nagar specialized in internal audits Can be appointed As per section 138 read with rule 13(1) of the Companies (Accounts) Rules, 2014, the internal auditor may be either a Chartered Accountant or Cost Accountant or such other professional as may be decided by the Board and further, the rule specifies for certain class of companies, the internal auditor may be either an individual or a partnership firm or a body corporate. Since the association does not fall within the above categories, it cannot be appointed as Internal Auditor. B Pvt. Ltd. (a company owned and managed by Chartered Accountants engaged in the business of providing internal audit services) Can be appointed Yes, B Pvt. Ltd. can be appointed being a body corporate.