Thursday, April 16, 2015

ICAI provides clarity on Auditor's Fraud Reporting Norms

The Institute of Chartered Accountants of India has said that reporting under section 143(12) of Companies Act to be done only if such frauds would have a material impact on the financial statements. "In case a fraud has already been reported or has been identified/detected by the management or through the company's vigil/ whistle blower mechanism and has been/is being remediated/dealt with by them and such case is informed to the auditor, the latter will not be required to report the same...," ICAI said in the note issued recently. This is because the auditor has not per se identified the fraud.

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