Rotation of Auditor sec 139

Section 139(2) of the Companies Act, 2013 (the Act) has mandated all listed companies and certain categories of unlisted public companies and private companies to mandatorily rotate their auditors (whether such auditor is an individual or a firm) once their auditor has served office as an auditor for a period of 10 or more consecutive years (Rotation Period). In this regard, the third Proviso to Section 139(2) of the Act has provided a moratorium period, wherein companies incorporated prior to 1 April 2014, have been provided a time period of 3 years from such date to comply with the requirement to rotate their auditors. Therefore, beginning 1 April 2017, all companies who are required to rotate their auditors under the Act, will have to rotate their existing auditors (Current Firm), if the Current Firm has held office as such company’s auditor for a period of 10 years or more.

Appointment of Internal Auditors is governed by Section 138 of CA 2013 

Sec - 138 says that the intenral auditor can be a CA / CWA / other professions as may be specified by MCA.  

Sec 138 is different from 139 which deals with Statutory Auditors. 

Sec 139 imposes some restrictions and Sec 138 did not have any such restrictions.