On October 14, 2014 the Central Government in exercise of powers conferred by sub-sections (1), (2) and (4) of section 139, sub-sections (1); and (2) of section 140, sub-section (3) of section 141, sub-sections (2), (3), (8) and (12) of section 143, sub-section (3) of section 148 read with sub-sections (1); and (2) of section 469 of the Companies Act, 2013 (18 of 2013), made Companies (Audit and Auditors) Amendment Rules, 2014 to amend the Companies (Audit and Auditors) Rules, 2014. The Rules inserts Rule 10 A after Rule 10 in the Companies (Audit and Auditors) Rules, 2014.
Rule 10 A states that “For the purposes of clause (i) of sub-section (3) of section 143, for the financial years commencing on or after 1st April, 2015, the report of the auditor shall state about existence of adequate internal financial controls system and its operating effectiveness:
Provided that auditor of a company may voluntarily include the statement referred to in this rule for the financial year commencing on or after 1st April, 2014 and ending on or before 31st March, 2015.”