02 February 2009
MAOCARO is changed .. now apllicable only CARO.. As per CARO, POINT NO.21 is 4 (xxi) Whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated;
Explanation: Reporting is required in respect of frauds on or by the company which were:
1)noticed or 2)reported
Though, it is not explicitly specified, the reporting may be in respect of such frauds noticed or reported by the management and not by the auditors. The term ‘reported’ may mean ‘reported to law enforcing authorities’ and/or to ‘related regulatory authorities’. The extent to which the information is to be detailed for reporting ‘the nature and the amount involved’ needs to be examined.
CAclubindia
