Company · People
Our auditor suspects fraud and mentioned reporting it — what is ADT-4?
The short answer
When your auditor forms an opinion that fraud exists, ADT-4 — the auditor's report of fraud — must be filed within two days under Section 143(12). For frauds of ₹1 crore or more, the auditor first seeks the board's or audit committee's reply within 45 days, then reports to the Central Government. This is a hard compliance clock — not a discussion to defer.
The paperwork nobody tells you about
Statutory formats that never touch the MCA portal — but an ROC inspection or due diligence will ask for every one of them.
Auditor first seeks the board's reply within 45 days for frauds ≥ ₹1 crore, then reports to the Central Government
Section 143(12) read with Rule 13, Companies (Audit and Auditors) Rules, 2014
The sequence
- 1Acknowledge the auditor's suspicion and convene the board or audit committee immediately
- 2Provide the board or audit committee response the auditor seeks under Section 143(12)
- 3Ensure the auditor files ADT-4 within two days of forming an opinion that fraud exists
- 4For frauds of ₹1 crore or more, allow the 45-day window for the board or audit committee reply before Central Government reporting
- 5Document the company's response and corrective steps in board or audit committee minutes
Do it with us — or check it yourself first
Questions founders actually ask
What is ADT-4?
ADT-4 is the auditor's report of fraud under Section 143(12) and Rule 13 of the Companies (Audit and Auditors) Rules, 2014. It must be filed within two days of the auditor forming an opinion that fraud exists.
Does the board get a chance to respond first?
Yes. For frauds of ₹1 crore or more, the auditor seeks the board's or audit committee's reply within 45 days before reporting to the Central Government, as required under Section 143(12) read with Rule 13.
How fast does the auditor have to report?
Within two days of forming an opinion that fraud exists. That timeline applies to ADT-4 — it is not something to negotiate around.
Last verified 2026-08-24 against MCA V3 records and ICSI reference material. Form-level deadlines and penalties live on the linked form pages and update there.