ICAI called as Institute of Chartered Accountants of India learned the Forensic Accounting and Investigation Standards (FAIS).
Several financial irregularities have been confronted on the corporate level for the alteration of the funds. Misusing the funds and restraint these problems ICAI has come up with the opinion of FAIS
The information can be determined through the tools before doing the examination on the whole section. These are part of Forensic accounting known as data analytics and the utilization of money or the entry and exit of money for various different purposes except for prescribed ones etc. in the accounting.
Both in India and overseas there is no standardization of forensic audits.
For the twin domains of Forensics and investigations, setting benchmark quality the proposed purpose for FAIS is to codify it this is because of the provision of assignments in indicated areas and set as a leader along with regulating the areas.
ICAI seeks to strengthen the standard of the forensic audit effective guidelines etc. which improves the standards of audits and admits the court of law.
“In our profession, there are auditing standards for auditing services, likewise when we are doing forensic assignments, we need to develop the forensic standards, so ICAI is pioneering in developing the first-ever forensic standards for forensic auditing and forensic investigation. By the end of December 2020, we will hopefully launch the forensic standards,”
The Forensic Accounting and Investigation Standards will be beneficial to the industry for processing the standardization into the board, the collecting of evidence in the process that may be subjected to the top level of scrutiny in the court has been used within all the assignments which relate to forensic accounting and investigation engagement. The Fund Diversion, Siphoning of Funds and other related activities, relating to Corporate, these measures will be necessary to the Public Interest Entities will be identified by the Forensic auditor.
“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”. This FAIS is being prepared and drafted indigenously but will be helpful for the Forensic Professionals worldwide. The Forensic Accounting Profession will gain importance in the Forensic Accounting world through a set of disciplinary approaches and will demonstrate Atmanirbharta in Forensic Accounting & Investigation,”
The ICAI is the only Institute in the accounting world that 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,”
A compulsory forensic audit will be there as RBI has declared to mandate those whose credit exceeds beyond Rs 200 crores. This idea of forensic due diligence will seek for larger companies in upcoming times.
ICAI also approves the forensic audit overseas also.
Find out the official notifications as per the pdf format for the convenience of the readers. The notifications were live on the ICAI website and one can check out the pdf here.