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Under which circumstances can an auditor of a company report fraud to the Central Government?
  • a)
    When there is any financial discrepancy in the company's accounts.
  • b)
    When there is a conflict of interest between the auditor and the company.
  • c)
    When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.
  • d)
    When the auditor suspects that the company's financial statements do not comply with the accounting standards.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Under which circumstances can an auditor of a company report fraud to ...
As per Section 143(12) of the Companies Act, an auditor is required to report to the Central Government if, during the course of their duties, they have reason to believe that an offence of fraud involving such amount or amounts as may be prescribed has been committed by the company's officers or employees. The reporting must be done immediately but not later than 60 days from the auditor's knowledge. This reporting mechanism ensures that instances of fraud are promptly addressed and appropriate actions can be taken.
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Under which circumstances can an auditor of a company report fraud to the Central Government?a)When there is any financial discrepancy in the company's accounts.b)When there is a conflict of interest between the auditor and the company.c)When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.d)When the auditor suspects that the company's financial statements do not comply with the accounting standards.Correct answer is option 'C'. Can you explain this answer?
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Under which circumstances can an auditor of a company report fraud to the Central Government?a)When there is any financial discrepancy in the company's accounts.b)When there is a conflict of interest between the auditor and the company.c)When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.d)When the auditor suspects that the company's financial statements do not comply with the accounting standards.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Under which circumstances can an auditor of a company report fraud to the Central Government?a)When there is any financial discrepancy in the company's accounts.b)When there is a conflict of interest between the auditor and the company.c)When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.d)When the auditor suspects that the company's financial statements do not comply with the accounting standards.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under which circumstances can an auditor of a company report fraud to the Central Government?a)When there is any financial discrepancy in the company's accounts.b)When there is a conflict of interest between the auditor and the company.c)When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.d)When the auditor suspects that the company's financial statements do not comply with the accounting standards.Correct answer is option 'C'. Can you explain this answer?.
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