Section 25
Appointment of auditors.
The Indian Institute of Management Act, 2017
About this Act
An Act to declare certain Institutes of management to be institutions of national importance with a view to empower these institutions to attain standards of global excellence in management, management research and allied area of knowledge and to provide for certain other matters connected therewith or incidental thereto.
(1) The Board of every Institute shall, prior to the end of every
financial year, and without prejudice to the provisions contained in the Comptroller and Auditor-General's
(Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971) or any other law for the time being in
force containing provisions for audit of accounts by the Institutes, appoint such auditors including the
internal auditor, on such remuneration as it thinks appropriate, to scrutinise the balance sheet and the
statement of income and expenditure of such Institute:
Provided that the Board shall change the auditors after every four years.
(2) The Board of every Institute shall constitute an Audit Committee to provide an expert advice on effectiveness of internal control system, risk management and audit report to the Board.
(3) The auditor appointed under sub-section (1) or any person employed by him shall not have any direct or indirect interest, whether pecuniary or otherwise, in any matter concerning or related to the administration or functions of the Institute.
Provided that the Board shall change the auditors after every four years.
(2) The Board of every Institute shall constitute an Audit Committee to provide an expert advice on effectiveness of internal control system, risk management and audit report to the Board.
(3) The auditor appointed under sub-section (1) or any person employed by him shall not have any direct or indirect interest, whether pecuniary or otherwise, in any matter concerning or related to the administration or functions of the Institute.