Skip to content

CS Professional · Internal and Forensic Audit · Audit and Investigations

In a fraud investigation of Pragati Foods Ltd, the SFIO has taken up the case. Meanwhile, a Registrar's inquiry and a separate investigation by another agency are also underway on the same matter. Which statement correctly reflects the Act's position on parallel proceedings once the SFIO investigation is ordered?

Once the SFIO takes up a case, other investigating agencies of the Central or State Government cannot proceed with an investigation into the same offences, and their records are transferred to the SFIO. This prevents duplication and conflicting findings, and the company has no say in the matter.

  1. AAll three agencies continue independently and file separate reports
  2. BThe Registrar's and other agencies' proceedings on the same matter are to be stayed or not proceeded with, and the relevant records are transferred to the SFIOCorrect
  3. CThe SFIO must stop and hand the case to the Registrar
  4. DThe company decides which agency will continue

Explanation

Once a case is assigned to the SFIO, no other investigating agency of the Central or State Government may proceed with an investigation into the same offences, and records are transferred to the SFIO. This avoids duplication and conflicting findings. The SFIO does not stop for the Registrar, and the company has no choice in the matter.

Did you get it right without looking?

One question tells you little. A timed set on Audit and Investigations shows your real accuracy, how long you take and where you lose marks.

Practise Audit and InvestigationsFree diagnostic mock

More Audit and Investigations questions