Reporting of frauds by the auditor has been saved
Reporting of frauds by the auditor
In December 2015, the Ministry of Corporate Affairs (MCA) came out with a notification pertaining to reporting of frauds (Rule 13 to the Companies (Audit and Auditors) Amendment Rules, 2015). This notification also indicated what could be considered an acceptable threshold value of fraud loss from a reporting standpoint (individually an amount of rupees one crore or above, in this case)—an aspect of materiality that was until now left to the company’s discretion.
To help organizations understand the implications of this notification, Deloitte India’s Forensic practice has released this point of view document, titled Reporting of Frauds by the Auditor: 5 considerations. It discusses the following aspects:
- Provides a brief outline of the notification released by the MCA
- Some concerns that may arise regarding the new notification
- Suggestions that could be useful to you