Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: empanelment :: cpt :: TDS :: VAT RATES :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: form 3cd :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company
 
 
ICAI »
 Constitution of Group for formulating the Detailed Action Plan - Ministry of Corporate Affairs
 CPE Events 20th March - 25th March 2017
 Invitation for contributions to Question Bank in respect of Information System Audit-(Assessment Test (ISA-AT) (New Syllabus)
 Reconstitution of Group for Rohini Land at Delhi
 Group to review the Terms of Reference of Infrastructure Development Committee
 Empanelment of Members to act as Observers at the Examination Centres for The Chartered Accountants Examinations May/ June 2017.
 Canada (Toronto) Chapter of ICAI launched helpline for Members interested for getting CPA Canada membership
  Regarding Empanelment of professionals having at least fifteen years of continuous practice as a Chartered Accountant with RD MCA as Mediator or Conciliator for the year 2017-2018
  Register for Webinar Organized By CPA Ontario in Association with Canada (Toronto) Chapter of ICAI on March 15, 2017.
 CPE Events 6th March - 11th March 2017
 Group to review for compensation package for employees of the Institute

ICAI provides clarity on auditor's fraud reporting norms
March, 16th 2015

In a new guidance to auditors on reporting suspected frauds, ICAI has asked them to apply "professional skepticism" before flagging such cases to the government and take into account the measures already taken by the companies internally.

In a detailed guidance note on reporting on fraud by auditors under the Companies Act, the apex body of chartered accountants ICAI has said they should "apply professional skepticism" while dealing with such matters.

Under section 143(12) of the Act, statutory auditors are required to report to the central government about a fraud or suspected fraud committed against the company by the officers or employees of the firm.

The Institute of Chartered Accountants of India has said that such reporting needs 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, it added.

According to the note, the auditor should apply "professional skepticism" to evaluate whether the fraud was indeed identified in all aspects by the management or through the company's whistle blower mechanism.

ICAI said that such an approach would help in making a between frauds identified due to matters raised by the auditor and those detected by company through its internal control mechanisms.

Price Waterhouse's Partner Sumit Seth said the guidance note provides clarity on various aspects about reporting of fraud by auditors.

He said: "It clarifies the definition of fraud, explains when and which frauds are to be reported, the manner of reporting including bringing in the concept of materiality which is fundamental to setting up an appropriate internal control system and audit.

"...an auditor will report frauds to central government only if he is the first person to identify/note such fraud."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions