Under Section 143(12) Companies Act 2013, the AUDITOR is required to report to the Central Government any FRAUD against the company by officers or employees if the amount involved exceeds:

1. Section 143(12) Companies Act 2013 (as substituted by the Companies (Amendment) Act, 2015) requires the auditor to report to the CENTRAL GOVERNMENT any fraud involving an amount of Rs 1 CRORE or more. 2. Rule 13 Companies (Audit and Auditors) Rules, 2014: (i) Frauds ≥ Rs 1 crore — auditor reports to Board/Audit Committee within 2 days of knowledge, and to Central Government within 60 days of receipt of reply (or after 45 days if no reply); (ii) Frauds BELOW Rs 1 crore — auditor reports to Audit Committee/Board and disclosure in Board's Report. 3. Failure to report attracts penalty under Section 143(15) — Rs 5 lakh fine (officer); Rs 1 lakh to Rs 25 lakh (auditor of co.). 4. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 143(12); Companies (Audit and Auditors) Rules 2014, Rule 13_