Auditor reporting obligations for fraud require prompt escalation to corporate governance and prescribed filing with the Central Government. Statutory auditors must report fraud or suspected fraud discovered during an audit by promptly notifying the Board or Audit Committee and, where required, filing the prescribed statement with the Central Government in the specified form if follow-up responses are not received. Auditors must maintain professional scepticism, not be influenced by company legal opinions, and report even when not the first to identify the issue. Resignation does not absolve the duty to report nor prevent regulatory consequences for participation in fraudulent conduct.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Auditor reporting obligations for fraud require prompt escalation to corporate governance and prescribed filing with the Central Government.
Statutory auditors must report fraud or suspected fraud discovered during an audit by promptly notifying the Board or Audit Committee and, where required, filing the prescribed statement with the Central Government in the specified form if follow-up responses are not received. Auditors must maintain professional scepticism, not be influenced by company legal opinions, and report even when not the first to identify the issue. Resignation does not absolve the duty to report nor prevent regulatory consequences for participation in fraudulent conduct.
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