Rules eased: auditors need to report to Centre corporate frauds of over Rs. 1 crore

Statutory auditors will now have to mandatorily report to the Centre all corporate frauds amounting to 1 crore or above. By specifying a threshold of 1 crore, the Ministry of Corporate Affairs (MCA) has now done away with the requirement to report immaterial frauds to the Centre.

• The auditor must first report the fraud to the company’s audit panel
• The audit panel will have to give its views in 45 days
• Within 15 days of that, the auditor will have to send his report to the Centre
• Frauds amounting to less than Rs. 1 crore will need to be reported only to the company’s audit panel.