ICAI to issue Forensic Accounting & Investigation Standards
The Institute of Chartered Accountants of India
September 1, 2020
ICAI Press Release
ICAI TO ISSUE FORENSIC ACCOUNTING & INVESTIGATION STANDARDS
With an increasing number of Accounting, Financial and Loan irregularities, there is a pressing need of Forensic Accounting and Investigation professionals in India to conduct their professional assignments in a manner which is based on the comprehensive, qualitative and prudent set of Standards, and also to collect evidences which may be subject to high level of scrutiny in a court of law. Benefits of these standards will enable:
1. Process standardization across the board.
2. Collection of evidences based on a process which may be subject to high level of scrutiny in a court of law.
3. Will be used in all the professional assignments relating to engagement of Forensic Accounting and Investigation
4. As the Forensic Auditor can identify the Fund Diversion, Siphoning of Funds and other related activities, relating to Corporate, these standards will be helpful to the Public Interest Entities as well.
The Role of Forensic Auditor is very crucial and therefore required in every sphere of Business. With the support of Forensic Audit Report, during the Insolvency resolution process, the Committee of Creditors can identify and declare the Promoters/ Directors of the Corporate Debtor Company, as “Willful Defaulter” and thereby take the necessary steps.
The Council of The Institute of Chartered Accountants of India (ICAI) has accepted the proposal of the Digital Accounting and Assurance Board (DAAB) of ICAI to develop and issue a set of Forensic Accounting and Investigation Standards (FAIS) in India. These set of Standards will result into process standardization across the board.
CA. Atul Kumar Gupta, President , ICAI said “ The project of developing Forensic Accounting and Investigation Standards (FAIS) is an outcome of extensive discussions within the ICAI on the need for the CA community to curtail its dependence on overseas literature and Standards, and instead develop its own set of intellectual property along the lines of the government’s vision of an “Atmanirbhar Bharat”. These FAIS are being prepared and drafted indigenously but will be helpful for the Forensic Professionals worldwide. Forensic Accounting Profession will gain an importance in the Forensic Accounting world by a set of disciplinary approach and will demonstrate Atmanirbharta in Forensic Accounting & Investigation.”
President, ICAI further added “ The ICAI is the only Institute in the accounting world which is developing a full set of FAIS standards for its Forensic Professionals. In fact, such intellectual property can be the basis of exporting our CA services to the world, which is finding our extensive experience in this area highly unique and top-notch.”
Tags: CA, ICAI
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