Y, while conducting secretarial audit of ABC Ltd. has found that one of the employees of the company is diverting the funds of the company to buy goods for this own benefit thereby committing the fraud amounting to ₹80 l

Section 143(12) read with the Companies (Audit and Auditors) Amendment Rules, 2015 deals with an offence of fraud. If an auditor of a company in the course of the performance of his duties as auditor, has reason to believe that an offence of fraud which involves or is expected to involve individually an amount of a fraud involving lesser than rupees one crore (as in the given case it is rupee eighty lakhs), the auditor shall report the matter to audit committee or to the board immediately but not later than two days of his knowledge of the fraud and he shall report the matter specifying the following: Nature of fraud with description; Approximate amount involved; and Parties involved. Y should take the above course of action as a Company Secretary.