Company Law - Auditors to Report Fraud of over 1 Crore
AS per Rule 13 of the Companies (Audit and Auditors) Rules, 2014, the Auditor is required to report to the Central Government if any offence involving fraud, is being or has been committed against the company by officers or employees of the company. Now, this rule is amended to stipulate that such reports are to be submitted to the Central Government in cases of frauds involving more than one crore rupees.
In case of a fraud involving amount less than one crore, the auditor shall report the matter to Audit Committee constituted under section 177 or to the Board.
This will apply to a Cost Auditor and a Secretarial Auditor also.
MoCA Notification in F.No. -CL-V., Dated December 14, 2015.