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CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations

A forensic accountant is asked who may be part of the Serious Fraud Investigation Office (SFIO) under the Companies Act, 2013. Which statement is correct?

The SFIO is headed by a Director and consists of experts appointed by the Central Government from fields such as banking, corporate affairs, taxation, forensic audit, capital market, information technology and law, as section 211(2) provides.

  1. AIt is headed by a Director and includes experts from fields such as banking, forensic audit, capital market, information technology and lawCorrect
  2. BIt is headed by a Registrar of Companies and includes only chartered accountants
  3. CIt is headed by a Judge of the Tribunal and includes only lawyers
  4. DIt is headed by the SEBI Chairman and includes only capital market experts

Explanation

Section 211(2) says the SFIO is headed by a Director and has experts from banking, corporate affairs, taxation, forensic audit, capital market, information technology, law or other prescribed fields. The other options name heads or limited compositions not found in the section.

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