ICAI framing qualifications for forensic auditors

The Institute of Chartered Accountants of India (ICAI) is drafting guidelines to mandate compulsory qualifications for professionals conducting forensic audits.

- Ruchika Chitravanshi

The ICAI plans to send its proposal to the Ministry of Corporate Affairs (MCA) detailing criteria, such as mandatory completion of the Forensic Standards Course and ICAI membership.

"At present, there are no qualification criteria for forensic auditors in India. Any company or individual can call themselves a forensic auditor," an ICAI source said.

With the rise in cyber-crimes and financial fraud, forensic accounting and fraud detection specializations are in high demand. Experts attribute the growing demand for forensic audits to increasing corporate scandals and regulatory crackdowns on money laundering and tax evasion.

The ICAI is also in discussions with the Securities and Exchange Board of India (Sebi) to seek input on forensic audit in India.

Experts, however, say conducting a forensic audit is not everyone's cup of tea. A forensic audit examines financial records to detect potential fraud, misconduct, or irregularities.