22 Jul, 2014, 05.20PM IST
NEW DELHI: The Corporate Affairs Ministry is looking at the possibility of having thresholds of the quantum of frauds at companies that need to be mandatorily reported by concerned auditors to the government.
In this regard, the government has sought suggestions from ICAI, the apex body for chartered accountants, Parliament was informed today.
Under the Companies Act, 2013, auditors have the responsibility of reporting frauds, at entities being audited by them, according to the ministry.
"The Institute of Chartered Accountants of India (ICAI) has been asked to give its comments on the feasibility of having some criteria to determine the thresholds of the quantum of a fraud/suspected fraud for mandatory reporting to the government by the auditors," Minister of State for Corporate Affairs Nirmala Sitharaman said in a written reply to the Rajya Sabha.