Skip to content

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

Meridian Textiles Ltd, a Pune-based company, learns that an office of the Central Government has been set up to investigate frauds relating to companies. Under the Companies Act, 2013, how is this office established?

The Serious Fraud Investigation Office is established by the Central Government by way of a notification under Section 211(1) of the Companies Act, 2013. Its purpose is to investigate frauds relating to a company; no regulator, tribunal or professional institute establishes it.

  1. ABy the Central Government through a notificationCorrect
  2. BBy the Securities and Exchange Board of India through a circular
  3. CBy the National Company Law Tribunal through an order
  4. DBy the Institute of Company Secretaries of India through a resolution

Explanation

Section 211(1) provides that the Central Government shall, by notification, establish the Serious Fraud Investigation Office to investigate frauds relating to a company. SEBI, NCLT and ICSI have no power to establish it.

Did you get it right without looking?

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

Practise Forensic Audit: Laws and RegulationsFree diagnostic mock

More Forensic Audit: Laws and Regulations questions