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of <h1>Companies Bill 2011: Clause 138 requires specific companies to appoint internal auditors; government sets audit rules and reporting.</h1> Clause 138 of the Companies Bill, 2011 mandates that certain prescribed classes of companies must appoint an internal auditor. This auditor can be a chartered accountant, a cost accountant, or another professional chosen by the Board to perform internal audits of the company's functions and activities. The Central Government is authorized to establish rules regarding the procedures and frequency of these internal audits, as well as how they are reported to the Board.
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