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: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT Audit :: list of goods taxed at 4% :: due date for vat payment :: empanelment
News Headlines »
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj
 Why seeing Form 26AS is a must before filing tax return and how to access it

ICAI raises concerns on fraud reporting in Companies Act
April, 29th 2014

The accounting regulator Institute of Chartered Accountants of India (ICAI) has raised concerns over the demand of reporting every fraud to the Central government by auditors within 60 days under the new Companies Act.

The ICAI has also urged the ministry of corporate affairs to relax the cap on number of audits per auditor in a representation to the ministry.

“Reporting all frauds, even the ones which are as small as Rs 1,000 is our responsibility. It is a huge responsibility. Reporting all the frauds would be difficult as frauds can be committed by management or even external forces. How can we detect all of them?” ICAI president K Raghu told The Indian Express.

“This is for the first time that a such a responsibility of reporting on frauds directly to the central government has been given to statutory auditors, in addition to their existing reporting requirements to shareholders.” He further added that the institute has told the ministry that there should be a framework for fraud detection which should be in line with the existing auditing standards, as issued by the ICAI.

According to Auditing Standard 240, “In an audit, the auditor does not guarantee that material mis-statements, whether from fraud or error, will be detected.”

Also, the auditor is required to communicate the fraud information to management, and “those charged with governance and, in some circumstances, when so required by the laws and regulations, to regulatory and enforcement authorities also”. However, there is no requirement of directly reporting to the Central government.

“We have set up an expert committee to work on a guidance note on fraud to educate our members.This reporting requirement is quiet demanding from statutory auditors’ perspective. Across the world, fraud detection is a highly specialised job,” Raghu said.

to help us personalise your reading experience.

According to Section 143(12) of the Companies Act, if an auditor comes across an offence involving fraud being committed against the company by management or employees, it will have to be reported to the Central government within 60 days. Also, before reporting it to the government, the incident would have to be brought to the notice of board or audit committee of the company and seek their reply within 45 days.

ICAI has also said that the cap of 20 audits per auditor should be relaxed to exclude private limited companies, small businesses and one person companies as the cap would cause undue hardship to both companies and auditors, and bring about increased costs.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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