Audit Committee Oversight & Internal Controls

Section 177 Companies Act 2013, Internal Financial Controls (IFC), internal audit, and fraud detection.

Target: EPFO APFC 2026•Topic-Level RAG Context Active•Model: Nemotron 3.5 Lightning 30B / 120B

Topic Overview

Section 177 Companies Act 2013, Internal Financial Controls (IFC), internal audit, and fraud detection.

Composition of Audit Committee (minimum 3 directors, 2/3rd independent directors)
Review of Internal Financial Controls (IFC) and Financial Statements
Auditor Independence, Rotation of Statutory Auditors (5/10 year rule)
Related Party Transactions (RPT) approval thresholds

💡 All members of the Audit Committee shall be financially literate, and at least one member shall have accounting expertise.
💡 Internal Audit is mandatory under Section 138 for listed and specified unlisted public/private companies.

3 Matched PYQs

2025•EPFO APFC•General Ability Test• Q.97

Which one of the following is not a 'fundamental accounting assumption' in the preparation of financial statements?

2023•EPFO EO/AO•General Ability Test• Q.80

Following is the information relating to a club for the year ending 31.03.2022:

Item	Amount (₹)
Subscription outstanding as on 31.03.2021	16,000
Subscription outstanding as on 31.03.2022	18,000
Subscription received in advance as on 31.03.2021	12,000
Subscription received in advance as on 31.03.2022	11,000

There are 70 members each paying an annual subscription of ₹1,000. Total subscription received during the year 2021–22 will be:

2017•EPFO EO/AO•General Ability Test• Q.69

Under which Schedule of the Companies Act, 2013, the formats of financial statements are prescribed?

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