The Institute of Chartered Accountants of India (ICAI) plans to come out with a detailed set of forensic accounting and Investigation standards by the end of December 2020. The move will make India the first country in the world to release a set of standards for Forensic accounting and Investigation.
The council of ICAI has accepted the proposal of Digital Accounting and Assurance Board (DAAB) of ICAI to develop and issue a set of Forensic Accounting and Investigation Standards (FAIS) in India.
ICAI is coming out with standards at a time when forensic accounting and investigation are being increasingly used to ascertain facts in corporate and banking frauds.
i.The standards will help in improving the quality of work and ensure more reliability.
ii.The standards will be useful to Law Enforcement Agencies, Corporates, Banks & other stakeholders to appreciate the common practices and understand finer nuances of conducting Forensic Accounting & Investigation Engagements.
iii.There will be 30 Standards under six groups.
iv.ICAI has been conducting a flagship certificate course on Forensic Accounting & Fraud Detection since 2009.
Reserve Bank of India Guidelines:
Reserve Bank of India (RBI) has mandated forensic audit for transactions over Rs. 200 crores. Lenders and Companies can individually call for audits or investigations upon suspected fraud.
Forensic Accounting is the investigation of fraud or financial manipulation by performing extremely detailed research and analysis of financial information.
Usually, Forensic accountants are hired to prepare litigation related to insurance claims, insolvency, fraud, skimming and any other type of financial theft.
President – Atul Kumar Gupta
Headquarters – New Delhi