Audit requirement for foreign companies: Indian operation accounts must be audited by a practicing Chartered Accountant or firm. Foreign companies conducting business in India must have accounts relating to Indian operations prepared under the requirements of clause (a) of sub section (1) of section 381 and rule 4 and audited by a practicing Chartered Accountant in India or a firm or limited liability partnership of practicing chartered accountants; Chapter X (Audit and Auditors) and its rules apply to foreign companies, mutatis mutandis, as far as applicable.