Write notes on the following: (iii) Auditors not to render certain services

Section 144 provides that an auditor appointed under this Act shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, (of the company concerned) but shall not include any of the following services (whether such services are rendered directly or indirectly to the company or its holding company or subsidiary company), namely, Accounting and book keeping services; Internal audit; Design and implementation of any financial information system; Actuarial services; Investment advisory services; Investment banking services; Rendering of outsourced financial services; Management services; and Any other kind of services as may be prescribed; This is a new provision and there was no restriction of this type in the Companies Act 1956. Therefore, an auditor or audit firm who or which has been performing any non-audit services on or before the commencement of this Act shall comply with the provisions of this section before the closure of the first financial year after the date of commencement of the Act i.e within 31st March, 2015. The explanation at the end of the section has explained the meaning of the words 'Directly and Indirectly'. Rendering of prohibited services by relatives of the individual Auditor or a partner of the firm or any other connected, associated or controlled person, or where the brand is used by the auditor of such service provider, is not permitted.