CMA Intermediate · Corporate Accounting and Auditing · Statutory Audit under the Companies Act, 2013
An auditor of an unlisted company fails to comply with section 143(12) on reporting fraud. What penalty does section 143(15) impose?
The penalty is Rs 1 lakh. Section 143(15) imposes Rs 5 lakh only where the company is listed, and Rs 1 lakh for any other company, so an unlisted company's auditor who fails to report fraud as required faces Rs 1 lakh.
- ARs 5 lakh
- BRs 1 lakhCorrect
- CRs 10 lakh
- DRs 50,000
Explanation
Section 143(15) sets the penalty for non-compliance with sub-section (12) at Rs 5 lakh for a listed company and Rs 1 lakh for any other company. The company here is unlisted, so the penalty is Rs 1 lakh. Rs 5 lakh would apply only to a listed company.
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