India thinks to issue forensic accounting and investigation standards
The centre is planning to introduce forensic accounting and investigation standards (FAIS). it purposes to set up basic quality parameters for conducting investigations.
The Institute of Chartered Accountant of India (ICAI) has created a committee in order to think about FAIS and expected to be prepared by 2020.
Objective of FAIS?
The main objective of it will be to classify best practices in forensic and investigations and will help to platform the basic quality benchmarks for conducting assignments.
Importance of FAIS –
The Reserve Bank of India (RBI) has made compulsory to create a forensic audit in a case when companies or lenders complete their transactions of more than Rs 200 crores. They go for such investigations or audits upon the suspected fraud.
Due to inadequacy of standardisation of forensic reporting and investigation, differences are made in reports.