Economy

CA Institute plans to come out with forensic accounting, investigation standards

Our Bureau New Delhi | Updated on September 01, 2020 Published on September 01, 2020

Atul Kumar Gupta, President, ICAI

The Institute of Chartered Accountants of India (ICAI) proposes to come out with a set of Forensic Accounting and Investigation Standards (FAIS), it’s President Atul Kumar Gupta said on Tuesday.

The new standards, numbering about 30, are expected to be ready by end-December and will go a long way in raising the quality benchmark of forensic engagements, Gupta told a virtual press conference.

He also said that FAIS will be mandatory for the members of the CA Institute and non-adherence will invite disciplinary action. Even if the forensic audit and investigation is conducted by a non-audit international firm, any member of the CA Institute signing such report would be required to follow the FAIS, Gupta clarified.

“We will be guided by who is signing the forensic investigation report and not by the firm,” he said.

FAIS will also be useful to the law enforcement agencies, corporate, banks and other stakeholders to appreciate the common practices and finer nuances of conducting forensic accounting and investigation engagements, he said.

The CA Institute will be the first body in the accounting world to develop a full set of FAIS standards for forensic professionals and stakeholders, he said.

The proposed standards would help Forensic Accounting and Investigation professionals to conduct their examinations in a highly professional manner and collect evidences which may be subject to high level of scrutiny in a court of law, Gupta said.

The Forensic Accounting and Investigation Professionals will be able to contribute to judicial proceedings as experts with the help of FAIS. Also, stakeholders like the Directorate of Enforcement (ED), Central Bureau of Investigation (CBI), Serious Fraud Investigation Office (SFIO), Economic Offence Wing (EOW), Reserve Bank of India (RBI) and others will gain more confidence in their investigations by involving forensic professionals supported by FAIS.

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Published on September 01, 2020
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