Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Reporting of Fraud

507 views

Save Share

Join Us Follow Us Add as Source

Manpreet

Finance

68 Points Posted on 22 July 2023

Dear All,

A company is carrying out illegal activities which came to knowledge of auditor from 3rd party.

What precautions we can take as a statutory auditor and how can we report the same. Also, the same does not have any the monetary impact on financial statements.

Replies (3)

Quick Summary

This discussion addresses the responsibilities of statutory auditors when they become aware of illegal activities by a company, even if these activities have no direct monetary impact on the financial statements. It explores the necessary precautions auditors should take and the proper reporting procedures, referencing Section 143(12) of the Companies Act 2013 for guidance on penalties and reporting obligations.