Q.Under Section 128 of the Companies Act, 2013, a company's books of account must be kept on which basis?
(A) Cash basis and single-entry system
(B) Accrual basis and double-entry system
(C) Any basis the directors personally prefer
(D) Accrual basis, but single-entry system is sufficient

Every company must keep proper double-entry Books of Account (Section 128) and prepare Financial Statements (Section 129) giving a true and fair view, laid before members at the AGM every year (with Consolidated Financial Statements required additionally where the company has subsidiaries). Internal Audit (Section 138) is an ongoing, management-appointed review required for prescribed classes of companies — distinct from the independent statutory Auditor, appointed under Section 139 for a five-year term, who must be a practising Chartered Accountant meeting Section 141's eligibility bar (and none of its listed disqualifications), and who report …