#stayamate

[masllp]

Auditors Reporting Fraud

Scams, Frauds are well-known to all!

The Corporate Sector is not immune to fraud. The alarming rise in fraud from Stayam Shipyard to ABG Shipyard not only decreases investors' interest but also keeps the deserving ones from accessing resources and support.

Investors in these industries and corporate sectors, as well as the general public, must be aware of fraud. What are our duties towards it? And what procedures Chartered Accountants should follow in such cases? Let's start with the definition of fraud.

Meaning of fraud Fraud, according to sec 447 of 2013 Companies Act, 2013, means any act, omission, concealment or abuse of post by any person or other person with the connivance, in any way, with intent to deceive, gain undue advantage of or injure the interests the company or its stakeholder, regardless of whether there is any wrongful gain, or loss.

Once we have understood what fraud is, it's time to understand what auditors are responsible for.

Auditors' duty Let's say that auditor suspects fraud under section 447 has been committed during audit. This is different from what sec 143(12), Companies Act, requires. In such a case, he will immediately initiate the procedure to notify the relevant authorities and disclose the information as required by Rule 13 of Companies (Audit & Auditors Rules).

We now know there are guidelines set forth by the Act. Here is a look at those requirements.

Auditor Guidelines for Reporting Fraud The Auditors must follow a process to report fraud to authorities. It is described in Rule 13 of Companies (Audit & Auditors Rules, 2014) and states that:

If fraud amounts to more than 1 Cr:

This shall be immediately reported to the Board or Audit Committee constituted u/s177. They will then receive their response/observations within 45 days.

The report must then be sent to the Central Govt. In form ADT-4 within 15 days, with or without the observations made by Board or Audit Committee constituted under u/s177 as the case may.

If fraud amounts to less than 1 cr: It must be reported within two days to Board/Audit Committee, seeking their observations within 45 days. There is no requirement to forward the same to Central Government. The Board Report must contain the following details:

Description of the nature of fraud

The approximate amount involved.

If remedial action is not taken, the parties involved are liable.

Remedial action taken

Non-Compliance For failing to report the same, the Auditor shall be punished with a fine of not less than one lakh. This can extend up to 25 lakhs, which is the imposition under sec 143(12).

This rule applies to Cost Audit u/s. 148 as well as Secretarial Audit.

Conclusion These are the results of ever-growing desire and an urge for a competitive advantage in the market that frauds and scandals have picked up in our country as well as around the world. As the Auditor, we have to be alert for such fraudulent practices.

Auditors must be able to recognize fraud and report it to their Nation to stay on top of their professions, given the speed with which technology is changing and the perpetrators minds.

AJSH provides support and guidance to our clients with their internal audits and government audits in India. We are happy to answer any questions you may have or provide more information about reporting fraud by auditors.

[fulloglee]

You know you’re Australia when -

* You believe that stubbies can be either drunk or worn. * You’re liable to burst out laughing whenever you hear of Americans “rooting” for something. * You pronounce Melbourne as ‘Mel-bin’. * You believe the ‘L’ in the word ‘Australia’ is optional. * You can translate: ‘Dazza and Shazza played Acca Dacca on the way to Maccas.’ * You believe it makes perfect sense for a nation to decorate its highways with large fibreglass bananas, prawns and sheep. * You think ‘Woolloomooloo’ is a perfectly reasonable name for a place. * You’re secretly proud of our killer wildlife. * You believe it makes sense for a country to have a $1 coin that’s twice as big as its $2 coin. * You understand that ‘Wagga Wagga’ can be abbreviated to ‘Wagga’ but ‘Woy Woy’ can’t be called ‘Woy’. * You believe that cooked-down axle grease makes a good breakfast spread. You’ve also squeezed it through Vita Wheats to make little Vegemite worms. * You believe all famous Kiwis are actually Australian, until they stuff up, at which point they again become Kiwis. * Beetroot with your Hamburger… Of course. * You know that certain words must, by law, be shouted out during any rendition of the Angels’ song ‘Am I Ever Gonna See Your Face Again’ And “Living next door to Alice”. * You believe that the confectionery known as the Wagon Wheel has become smaller with every passing year. * You believe that the more you shorten someone’s name the more you like them. * Whatever your linguistic skills, you find yourself able to order takeaway fluently in every Asian language. * You understand that ‘excuse me’ can sound rude, While ‘scuse me’ is always polite. * You know what it’s like to swallow a fly, on occasion via your nose. * You know it’s not summer until the steering wheel is too hot to handle and a seat belt buckle becomes a pretty good branding iron. * Your biggest family argument over the summer concerned the rules for beach cricket. * You shake your head in horror when companies try to market what they call ‘Anzac cookies’. * You still think of Kylie as ‘that girl off Neighbours’. * When working on a bar, you understand male customers will feel the need to offer an excuse whenever they order low-alcohol beer. * You know how to abbreviate every word, all of which usually end in -o: arvo, combo, garbo, kero, metho, milko, muso, rego, servo, smoko, speedo, righto, goodo etc. * You know that there is a universal place called “woop woop” located in the middle of nowhere…no matter where you actually are. * You know that none of us actually drink Fosters beer, because it tastes like shit. But we let the world think we do. Because we can. * You have, at some time in your life, slept with Aeroguard on in the summer. Maybe even as perfume. * You’ve only ever used the words – tops, ripper, sick, mad, rad, sweet – to mean good. And then you place ‘bloody’ in front of it when you REALLY mean it. * You know that the barbecue is a political arena; the person holding the tongs is always the boss and usually a man. And the women make the Salad. * You say ‘no worries’ quite often, whether you realise it or not. * You understand what no wucking furries means. * You’ve drank your tea/coffee/milo through a Tim Tam. * You own a Bond’s chesty. In several different colours. * You know that roo meat tastes pretty good, But not as good as barra. Or a meat pie. * You know that some people pronounce Australia like “Straya” and that’s ok.

[naroflossesfilthy]

I was cooler than your mans when I was static 🤷‍♂️ #StanceWars #stancewarsvegas #stancewarsvegas2016 #top100 #wheelwhore #thuggin #averydimensions #paintisdead #vinylwrap #workwheelsjapan #workwheelsusa #workryver #stance #static #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #ourlife_ #crevmfam #repkilla (at Las Vegas, Nevada)

[allureeleutheromania]

Is over

Photo by cottonbro on Pexels.com Is it valid to feel this way ?When my heart is accelerating at a paceWho’s with my breath is at the race?Making it hard for me to stayAm I in a relay?I’m trying to catch my thoughtsBut I can’t come acrossSeems like everything is come to haltOh I think I need to plodHowever, everything seems fuzzyLike a frost spread across the honeyAm  I feeling weird?Or is it…

[satyamcolonisers-blog]

Land acquisition India, Haryana acquires private land for the purpose of development of infrastructural and industrialization. To get more information just visit our website.

[gregcampbelltattoo-blog]

Bye Sydney!! Hello Goldie!! 🔥😎🍻🍶🍩🥃 #famfirst #familia #goldcoast #surfersparadise #stayamate #letsgo (at Gold Coast Airport)

[naroflossesfilthy]

Dirty yard pics. Smh I got a neglected yard but a clean whip 🤦‍♂️🤷‍♂️ . . . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workvskf #stance #bagged #camber #sfs #sovereignfitmentsociety #crevmfam #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #ourworld_ (at Nambe, New Mexico)

[naroflossesfilthy]

Got the whips up and running, because perfection takes time 👌 . . . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workvskf #stance #bagged #camber #sfs #sovereignfitmentsociety #crevmfam #stayammed #carlife #carporn #clubrsx #rsx #dc5 #wedswheels #lxz #abquptown #repkillas (at ABQ Uptown)

[naroflossesfilthy]

Thinking bout it now, y'all aren't ready for what's to come 🌚💦 . . Photo by @ben_cooper_photography . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #crevmfam #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #ourworld_ #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #wrapitabq #stancewarshouston #iamtop100 #top100 #stancewars (at Minute Maid Park)

[naroflossesfilthy]

Gotta few things up my sleeve... stay tuned . . . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #sfs #sovereignfitmentsociety #crevmfam #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #ourworld_ #stancewarshouston #stancewars (at The Galleria)

[naroflossesfilthy]

Front End Friday #postem . Photo by @becausecamberedshots @becausecamber_ . . #wheelwhore #thuggin #rollinshot #averydimensions #paintisdead #vinylwrap #workwheelsjapan #workwheelsusa #workryver #stance #static #camber #sfs #sovereignfitmentsociety #stayammed #crevmfam #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #slammedenuff #slammedenuffdallas #ourworld_ (at Dallas, Texas)

[naroflossesfilthy]

Truuuuuuuuuuuueeeeee 🤷‍♂️ . . Photo by @baesic6 . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #wrapitabq #stancewarshouston #iamtop100 #top100 #stancewars (at Houston, Texas)

[naroflossesfilthy]

They all gone be throwbacks for now 😜 . . Photo by @ben_cooper_photography @frawdulent . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #wrapitabq #stancewarshouston #iamtop100 #top100 #stancewars (at Minute Maid Park)

[naroflossesfilthy]

In a week full of negativity about "fake wheels this" and "fake wheels that" take a moment to admire some beautiful wheels that aren't just bought by the click of a mouse and delivered to your door in a couple of days. Wheels that take time to build, that take effort to shop for and to find in the sizes, specs, and finishes you're happy with. Or even to have to settle so you can get them home to begin a "building" process on them. Price isn't everything. Take passion in the shoes your girl wears. . . Photo by @becausecamberedshots . #wheelwhore #thuggin #hardparked #averydimensions #paintisdead #vinylwrap #chasebays #workwheelsjapan #workwheelsusa #workryver #wedswheels #kranze #stance #static #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #prelude #bb6 #ernm #eliteracingnm #icy #nmdesertfest #lol (at Dallas, Texas)

[naroflossesfilthy]

Informal shoot in the parking structure, with the iPhone7 lmao . Photo by @kleanbean_ . . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #wrapitabq #stancewarshouston (at The Galleria)

[naroflossesfilthy]

You're name ain't ringin no bells boii . . . #wheelwhore #hardparked #averydimensions #paintisdead #chasebays #workwheelsjapan #workwheelsusa #workryver #stance #bagged #camber #sfs #sovereignfitmentsociety #stayammed #carlife #carporn #clubrsx #rsx #dc5 #nemesisinc #wrapitabq #stancewarshouston #dc505who (at The Galleria)