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CMA Intermediate · Corporate Accounting and Auditing · Audit Report and Reporting under CARO

Which of the following is a requirement of CARO 2020 clause 3(xi) on fraud and whistle-blower complaints?

The auditor must state whether whistle-blower complaints received by the company during the year have been considered. Clause 3(xi) also covers fraud by and on the company, and whether any sub-section (12) of section 143 report was filed in Form ADT-4.

  1. AReporting only frauds by the company, not frauds on the company
  2. BStating whether the auditor has considered whistle-blower complaints received during the year by the companyCorrect
  3. CConfirming that every fraud has been recovered from the perpetrator
  4. DReporting frauds only if they exceed one per cent of turnover

Explanation

Clause 3(xi)(c) asks whether the auditor has considered whistle-blower complaints received during the year. Clause (a) covers fraud by the company and fraud on the company, with nature and amount, and there is no turnover threshold or recovery requirement in the text.

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