Reporting of fraud by an Auditor:
❖ Reporting to CG: As per Section 143 of Companies Act, 2013 if auditor has reason to believe that offence of fraud involves an amount Rs 1 Cr or more by Companies employee, it is to be reported to the CG.
❖ Reporting to Audit Committee: In case of fraud for less than Rs 1 Crore, auditor shall report to the audit committee.
❖ Disclosure in Boards Report: The auditor is required to report details of frauds in Boards Reports.
❖ Auditor is required to state the reason for qualification or negative audit report.
