Norms for Company Auditor on Fraud Auditor :

Accounting governing body Institute of Chartered Accountants of India will bring Audit Guidance note for Auditor for detecting Corporate Fraud. This guidance note is in accordance with New Companies Act, 2013 and will make it mandatory for every company auditor to report corporate frauds to Indian Government with the prescribed time frame.

Under the provision of new Act, if Statutory Auditor believe with having sufficient reason that there is an offence involving fraud being committed by the company, then Statutory Auditor has to report to the government within 60 Days of such knowledge.

ICAI the accounting regulator will come soon with the Guidance Documents for its member for detecting and reporting corporate fraud.

This is the first time in Indian History that such responsibility comes on Statutory Auditor on reporting corporate fraud directly to the Central Government. In India there is much needed such Fraud Reporting requirement from Statutory Auditors perspective.