The act also prohibits auditors from providing non-audit services such as book-keeping, internal audit, actuarial services, investment advisory services, etc. to the company where they are auditor to ensure their independence. These measures will not only ensure quality in audits but will also bring more transparency and accountability for the auditors as well as the company. 15.
This brings me to an important provision in the Act, relating to the introduction of “Secretarial Audit” as a new class of audit, in addition to the existing mandated statutory audit, internal audit and cost audit. Secretarial audit will be mandatory for listed companies and certain other specified companies viz.