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Under Section 12 of the Insurance Act 1938, the annual audit of an insurer is conducted under whose authority and powers (when not subject to Companies Act audit)?
A{'text': 'The Reserve Bank of India', 'letter': 'A'}
B{'text': 'The Comptroller and Auditor General', 'letter': 'B'}
C{'text': 'The Insurance Ombudsman', 'letter': 'C'}
D{'text': 'An auditor with powers under Section 147 of the Companies Act, 2013', 'letter': 'D'}
Answer & Solution
Correct answer: D. {'text': 'An auditor with powers under Section 147 of the Companies Act, 2013', 'letter': 'D'}
1. Section 12 mandates annual audit of insurer accounts.
2. The auditor's powers come from the Companies Act framework.
3. The auditor shall have the powers of, exercise the functions vested in, and discharge the duties imposed on auditors of companies by Section 147 of the Companies Act, 2013.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "the auditor shall in the audit of all such accounts have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, auditors of companies by section 147 of the Companies Act, 2013."_