ICAI introducing standards for forensic accounting and investigation
The Institute of Chartered Accountants of India (ICAI) is
planning to introduce standards for forensic accounting and investigation that
entail quality benchmarks and procedures that would make the collection of
evidence withstand a high level of legal scrutiny.
There are a large number of investigations going on today and we find that many times forensic reports are not admissible in the court of law...This can be addressed by putting standard practices in place for such accounting that does not exist currently,” said Atul Kumar Gupta, President, ICAI
ICAI will issue draft guidelines by end of December to invite public comments and seek views of MCA, SEBI, RBI, CAG, and various investigation agencies as well.
ICAI stated that these standards would provide members of ICAI a good overview of forensics and investigations, In a press statement. How to undertake projects and assignments in these areas, how to conclude the work completed, and finally how to report findings to its stakeholders.”
The project of developing (this) 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 Aatmanirbhar Bharat,” Gupta added.
ICAI said that certain standards will also be beneficial for law enforcement agencies, corporates, banks, and other stakeholders to acknowledge the common practices and understand the finer nuances of conducting forensic accounting and investigation engagements. “Forensic Accounting and Investigation Professionals will be able to contribute to legal procedures as experts.”
These standards, ICAI said, will be principle-based and stipulate certain basic but mandatory requirements to be fulfilled by members who undertake such assignments.