Fraud

Reporting requirement

Report whether (a) any fraud by the company or any fraud on the company has been noticed or reported during the year; if yes, the nature and the amount involved; (b) whether any report under Section 143(12) of the Companies Act has been filed by the auditors in Form ADT-4 with the Central Government; (c) whether the auditor has considered whistle-blower complaints, if any, received by the company during the year.

What to verify before signing

• Walkthrough of whistle-blower policy and complaints register
• Forensic interviews of management on fraud risk under SA 240
• Section 143(12) threshold — material fraud ≥ ₹1 crore reported to Central Govt via ADT-4
• Frauds below threshold reported to Audit Committee per Rule 13
• Provisions / contingent liability for amounts to be recovered

Sample observation — applicable

(a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year. (b) No report under sub-section (12) of section 143 of the Companies Act 2013 has been filed by the auditor in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government, during the year and up to the date of this report. (c) We have taken into consideration the whistle blower complaints received by the Company during the year, while determining the nature, timing and extent of our audit procedures.

Related standards