Section 143 of Companies Act, 2013 read with Rule 13 of Companies (Audit
and Auditors) Rules, 2014 mandates that if an auditor of a company, in
the course of performance of his duties as an auditor, encounters an
offence involving frauds committed by officers or employees of a company
against such company he should immediately report it to the Central
Government.
In view of representations received from stakeholders, an amendment of Section 143 of Companies Act, 2013 is included in the Companies (Amendment) Bill, 2014 passed by the Lok Sabha on 17.12.2014. The amendment proposes to enable prescription or thresholds beyond which fraud shall be reported to the Central Government. Below such threshold, it will be reported to the Audit committee.
In view of representations received from stakeholders, an amendment of Section 143 of Companies Act, 2013 is included in the Companies (Amendment) Bill, 2014 passed by the Lok Sabha on 17.12.2014. The amendment proposes to enable prescription or thresholds beyond which fraud shall be reported to the Central Government. Below such threshold, it will be reported to the Audit committee.
Press Information Bureau
Government of India
Ministry of Corporate Affairs
Government of India
Ministry of Corporate Affairs
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