ABC & Co., Chartered Accountants, are the Statutory Auditors, as well as the Internal Auditors of Super Sky Limited. Evaluate whether the same is permitted under the Companies Act, 2013. If not, what are the penal pr

As per provisions of Section 144 of the Companies Act, 2013, the statutory auditor of a Company shall not provide internal audit services. The internal audit services provided by ABC & Co., Chartered Accountants to Super Sky Limited, is not permissible under the Companies Act, 2013. As per section 147(2) of the Companies Act, 2013, if an auditor of a company contravenes any of the provisions of section 139, section 143, section 144 or section 145, the auditor shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees or four times the remuneration of the auditor, whichever is less. Provided that if an auditor has contravened such provisions knowingly or wilfully with the intention to deceive the company or its shareholders or creditors or tax authorities, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees. ABC & Co. is liable to penalties as mentioned above and it cannot file an application for Compounding, as the offence committed under section 144 of the Companies Act, 2013 is a non-compoundable offence, if the auditor has contravened knowingly or wilfully.