Whenever there is case of suspected fraud or actual fraud, all the points given below should be written.
Requirements of SA 240
COMMON POINTS — SA 240 & 450

1. Circumstances Indicates Possible Misstatement – Consider Potential Effect – If Effect could be Material – Perform Modified & Additional Procedures
2. If actual Misstatement – Evaluate whether Indicative of Fraud – if such Indication – Implication on other aspects of audit, Eg Cannot be isolated occurrence , Reliability of WR

Requirements of SA 450
3. After Misstatement Identified – Extend Audit Procedures to know materiality and Ask for Adjustment for Misstatements and Must for Material Items –Even after extension unable to conclude about materiality given or If rectification not done – give qualified or adverse opinion as the case may be
COMMON POINTS — ABILITY / SEC 143 / CARO
4.Ability to Continue as Auditor
Resulting from fraud or expected fraud – encounters exceptional circumstances – not able to continue.

1. Report Problem as per legal, professional requirements to appropriate person or authorities
2. Consider is it appropriate to withdraw
3. If it is appropriate to with draw – inform, discuss with management & TCWG with reasons / Report decision to persons, authorities as per legal & regulatory requirement

5.Requirement of Sec 143 (12)
Reason to Believe – Fraud by of Officer or Employee on the company—report to CG (if fraud >=1 crore) or to Audit Committee , BOD (if fraud is less than 1 crore)
6.Requirement of Clause (x) of CARO
Report on the company by officer or employee of the company or fraud by company noticed or reported