Reporting on fraud under Section 143(12) - if fraud against the company by officers/employees is of ≥ Rs. 1 crore, the auditor reports to:
ASEBI only
BCentral Government via Form ADT-4 within prescribed time
CPolice only
DThe auditor's spouse
Answer & Solution
Correct answer: C. Police only
1. Section 143(12) + Rule 13 of CA(Audit & Auditors) Rules 2014: fraud ≥ Rs. 1 crore → report to Central Government in Form ADT-4.
2. Fraud < Rs. 1 crore → report to Audit Committee/Board, who must disclose in Board's Report.
3. The reporting threshold and form are codified.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
Related questions
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