IndigoLearn

SA 240 Auditor Responsibility with Fraud

Sir if Fraud value is less than 1 crore is there a need to report to central government sir


M.V. Naresh

M.V. Naresh

CA Inter

2K+

25-Jan-21 12:04

31

Answers (3)

yes no need to reprt to central govt( mostly)


GGNS .

GGNS .

CA Inter

5

25-Jan-21 12:46

No need to report if fraud amount less than 1 crore


Venkateshwara Prabhu

Venkateshwara Prabhu

CA Inter

16K+

25-Jan-21 21:34

As per sub-section (12) of section 143 of the Companies Act, 2013, if an auditor of a company in the course of the performance of his duties as auditor, has reason to believe that an offence of fraud involving such amount or amounts as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government. In this regard, Rule 13 of the Companies (Audit and Auditors) Rules, 2014 has been prescribed. Sub-rule (1) of the said rule states that an offence of fraud, which involves or is expected to involve individually an amount of Rs.1 crore or above, is being or has been committed against the company by its officers or employees, the auditor shall report the matter to the Central Government.


Madhuri Veluri

Madhuri Veluri

Moderator

28-Jan-21 13:19