Policy Watch
First In India: ICAI To Come Out With Forensic Accounting, Investigation Standards
New Delhi: With lack of standardised processes for forensic accounting and investigation, the Institute of Chartered Accountants of India (ICAI) is developing the first-ever standards and have invited comments from its members.
The full set of Forensic Accounting and Investigation Standards (FAIS) for forensic professionals is expected to be ready by the end of December as the institute has set November 9 as the last date for submitting comments.
The move by ICAI to have the standards comes at a time when there are rising instances of forensic accounting and investigation assignments related to ascertaining facts in corporate and banking frauds.
“With the advent of technology financial frauds have taken a new dimension and the crimes are made more complex with multi-layering of transactions, an extension to that The Digital Accounting and Assurance Board (Non-Standing Committee of ICAI) trains all members in the field of Forensic Accounting and Fraud Detection, Information System Audit, Risk Assessment, Blockchain, Cyber Laws to combat and address related issues,” said a senior ICAI officer.
The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 which regulates the profession of Chartered Accountancy in India. During more than seven decades of its existence, ICAI has always been proactively supporting all endeavours of the government as a part of its role in aiding towards better governance.
ICAI has constituted the Digital Accounting and Assurance Board (DAAB), which act to foster a strategy on aspects related to digital accounting and assurance. The Board identify, deliberate and highlight issues in accounting (including valuation) and assurance (including internal audit) in the digital world.
According to the institute, the standards would also be useful for law enforcement agencies, corporates, banks and other stakeholders to appreciate the common practices and finer nuances of conducting forensic accounting and investigation engagements.
Digital Accounting and Assurance Board (DAAB) is in the process of issuing a set of Forensic Accounting and Investigation Standards (FAIS). ICAI has invited comments on the following exposure drafts of Forensic Accounting and Investigation Standards (FAIS):
- Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Engagement Objectives – 210
- Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Engaging with Agencies- 240
- Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Planning the Assignment – 310
4.Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Evidence and Documentation – 320
5.Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Conducting Work Procedures – 330
6.Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Conducting Interviews – 340
7.Exposure Draft on Standard on Forensic Accounting and Investigation (FAIS) – Review and Supervision-350
The said exposure drafts with comment submission links are available on the Institute’s website at following link: https://www.icai.org/post/invitation-of-comments-on-ed-fais-210-240-310-320-330-340-350
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