Perfect Pvt. Ltd. wishes to appoint its Secretary, Satish, as an internal auditor. Referring to the provisions of the Companies Act, 2013 advise the company.

According to Section 138(1) of the Companies Act, 2013 read with the rule 13 of the Companies (Accounts) Rules, 2014, following persons may be appointed as an internal auditor of the company: 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. Further, rule 13 of the Companies (Accounts) Rules, 2014 inter alia provides that the internal auditor may or may not be an employee of the Company. Mr. Satish being the Secretary of Perfect Ltd. may be appointed as an internal auditor of the company only if so decided by the Board to conduct internal audit of the functions and activities of the Company.