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CMA Intermediate · Corporate Accounting and Auditing · Auditing of Different Types of Undertakings

Which of the following is the statute that primarily governs the regulation of accounts and audit of an insurance company in India, in addition to the Companies Act, 2013?

The Insurance Act, 1938 read with the IRDA Act, 1999 and IRDAI regulations governs accounts and audit of insurance companies alongside the Companies Act, 2013, because these laws specifically regulate insurers, unlike banking, electricity or securities legislation.

  1. AInsurance Act, 1938 read with the IRDA Act, 1999 and IRDAI regulationsCorrect
  2. BBanking Regulation Act, 1949
  3. CElectricity Act, 2003
  4. DSecurities Contracts (Regulation) Act, 1956

Explanation

Insurers are regulated by the Insurance Act, 1938, the IRDA Act, 1999 and IRDAI regulations on financial statements and audit. The Banking Regulation Act applies to banks, the Electricity Act to power utilities, and the SCRA to securities markets.

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