2023 · Q40
Reporting on fraud is to be made by an auditor to the Central Government when the sums involved in the fraud:
General Accounting Principles, Auditing and InsuranceAuditing
- Aexceed Rs. 20 lakh
- Bexceed Rs. 50 lakh
- Cexceed Rs. 75 lakh
- Dare Rs. 1 crore or above
Explanation
Section 143(12) of the Companies Act, 2013 requires the auditor to report fraud to the Central Government when the amount involved is Rs. 1 crore or above. Frauds below that threshold are reported to the Audit Committee or the Board of Directors instead. Hence (d) is correct.