Section 448 of the Companies Act, 2013: Punishment for false statement
The pre-certification work and attestation/audit assignments performed by practicing professionals like CAs, CS's, and CMAs are covered by this section, which corresponds to Section 628 of the 1956 Act.
According to Section 448, if any person makes a statement that is either :
(a) False in any material particulars, knowing it to be false, or
(b) omits any material fact, knowing it to be material, in any return, report, certificate, financial statement, prospectus, statement, or other document required by, or for the purposes of, any of the provisions of this 2013 Act or the rules made there under, they are liable under Section 447.
Therefore, if the conditions outlined in Section 448 are satisfied, every professional who provides, signs, attests or certifies a return, report, certificate, financial statement, etc. under the 2013 Act will be held liable under Section 447.
What is a False Statement?
A statement that is untrue is called a false statement. Although the term "fallacy" is occasionally used as a synonym for "false statement," this is not how the term is used in the contexts of philosophy, mathematics, logic, and the majority of formal settings.
Not all falsehoods constitute lies. A statement that is intentionally made false and is known to be false is called a lie. A false statement is one that is given by someone who does not know it is false, even if it is untrue but is not necessarily intended to mislead.
1. Misleading Statement (lie)
John was a marine biologist and knew that sea otters are mammals, but he told his younger brother that they are fish. In order to teach his younger brother to start projects early and develop the skills he needs to succeed in life, John only wanted to see him fail his class report.
2. Statement made out of Ignorance
In his school report, John's brother James claimed that sea otters were fish. After his teacher explained why that claim was untrue, James received an F. James had heard that sea otters were fish from his older brother John, a marine biologist, and had no idea that sea otters were in fact mammals.