Auditors resposibility on reporting of frauds
This query is : Open
20 July 2014
Dear,
As per Sec 143 (12) of New Companies Act, 2013 it is the responsibility of the auditor to report on frauds to CG. Whether auditor should report fraud even if it is not material or prejudicial to the company?
As per Sec 143 (12) of New Companies Act, 2013 it is the responsibility of the auditor to report on frauds to CG. Whether auditor should report fraud even if it is not material or prejudicial to the company?
20 July 2014
"Has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company.."
above wording clear that his professional judgment required for measure the activity to be fall in criteria of offence or fraud.
Concept of materiality is not important but the word "Against the company" is important.
an offence or fraud which is not against the company is not within ambit of section 143(12).
above wording clear that his professional judgment required for measure the activity to be fall in criteria of offence or fraud.
Concept of materiality is not important but the word "Against the company" is important.
an offence or fraud which is not against the company is not within ambit of section 143(12).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Taxation on LTCG for property sold after 24JUL2024
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- LTCG for Assmt year 26-27
- Tax liability on income of freelancer
- Plot of land. Cost of Acquisition
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
