CARO 2020 Clause (xi) regarding fraud requires the auditor to report:
AWhether any fraud BY the company OR on the company has been noticed or reported during the year, with nature and amount
BOnly fraud > Rs. 5 crore
COnly fraud committed by directors
DOnly fraud against employees
Answer & Solution
Correct answer: A. Whether any fraud BY the company OR on the company has been noticed or reported during the year, with nature and amount
1. CARO 2020 Clause (xi)(a)-(c) requires reporting fraud BY or ON the company, with nature and amount.
2. Whistle-blower complaints considered are also included.
3. No minimum threshold in CARO; threshold applies to Section 143(12) central-government reporting.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
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