{"id":23836,"date":"2022-12-31T18:12:36","date_gmt":"2022-12-31T12:42:36","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=23836"},"modified":"2026-08-11T00:54:53","modified_gmt":"2026-08-10T19:24:53","slug":"basic-responsibilities-liabilities-of-forensic-auditor","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/","title":{"rendered":"Basic Responsibilities &#038; Liabilities of Forensic Auditor"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a9127964c10a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a9127964c10a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Basic_Responsibilities_Liabilities_of_Forensic_Auditor\" title=\"Basic Responsibilities &amp; Liabilities of Forensic Auditor\">Basic Responsibilities &amp; Liabilities of Forensic Auditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#To_Dos_by_the_Forensic_Auditor\" title=\"To Do\u2019s by the Forensic Auditor\">To Do\u2019s by the Forensic Auditor<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Forensic_Accounting_and_Investigation_Standards_FAIS_issued_by_ICAI\" title=\"Forensic Accounting and Investigation Standards (FAIS) issued by ICAI\">Forensic Accounting and Investigation Standards (FAIS) issued by ICAI<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Forensic_Auditing_Standards_issued_By_ICAI\" title=\"Forensic Auditing Standards issued By ICAI\u00a0\">Forensic Auditing Standards issued By ICAI\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Purpose_of_FAIS\" title=\"Purpose of FAIS\">Purpose of FAIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Key_Objectives_of_FAIS\" title=\"Key Objectives of FAIS\">Key Objectives of FAIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Stakeholders_Benefited_by_FAIS\" title=\"Stakeholders Benefited by FAIS\">Stakeholders Benefited by FAIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Structure_of_FAIS\" title=\"Structure of FAIS\">Structure of FAIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Significance_of_FAIS\" title=\"Significance of FAIS\">Significance of FAIS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Standard-wise_summary_of_all_individual_FAIS_standards_FAIS_100_to_FAIS_600_series\" title=\"Standard-wise summary of all individual FAIS standards (FAIS 100 to FAIS 600 series)\">Standard-wise summary of all individual FAIS standards (FAIS 100 to FAIS 600 series)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_100_Series_Key_Concepts\" title=\"FAIS 100 Series: Key Concepts\">FAIS 100 Series: Key Concepts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_110_%E2%80%93_Nature_of_Engagement\" title=\"FAIS 110 \u2013 Nature of Engagement\">FAIS 110 \u2013 Nature of Engagement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_120_%E2%80%93_Fraud_Risk_Assessment\" title=\"FAIS 120 \u2013 Fraud Risk Assessment\">FAIS 120 \u2013 Fraud Risk Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_130_%E2%80%93_Laws_and_Regulations\" title=\"FAIS 130 \u2013 Laws and Regulations\">FAIS 130 \u2013 Laws and Regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_140_%E2%80%93_Applying_Hypotheses\" title=\"FAIS 140 \u2013 Applying Hypotheses\">FAIS 140 \u2013 Applying Hypotheses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_200_Series_Engagement_Management\" title=\"FAIS 200 Series: Engagement Management\">FAIS 200 Series: Engagement Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_210_%E2%80%93_Engagement_Objectives\" title=\"FAIS 210 \u2013 Engagement Objectives\">FAIS 210 \u2013 Engagement Objectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_220_%E2%80%93_Engagement_Acceptance_and_Appointment\" title=\"FAIS 220 \u2013 Engagement Acceptance and Appointment\">FAIS 220 \u2013 Engagement Acceptance and Appointment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_230_%E2%80%93_Using_Work_of_an_Expert\" title=\"FAIS 230 \u2013 Using Work of an Expert\">FAIS 230 \u2013 Using Work of an Expert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_240_%E2%80%93_Engaging_with_Agencies\" title=\"FAIS 240 \u2013 Engaging with Agencies\">FAIS 240 \u2013 Engaging with Agencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_250_%E2%80%93_Stakeholder_Communication\" title=\"FAIS 250 \u2013 Stakeholder Communication\">FAIS 250 \u2013 Stakeholder Communication<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_300_Series_Executing_Assignments\" title=\"FAIS 300 Series: Executing Assignments\">FAIS 300 Series: Executing Assignments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_310_%E2%80%93_Planning_the_Assignment\" title=\"FAIS 310 \u2013 Planning the Assignment\">FAIS 310 \u2013 Planning the Assignment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_320_%E2%80%93_Evidence_and_Documentation\" title=\"FAIS 320 \u2013 Evidence and Documentation\">FAIS 320 \u2013 Evidence and Documentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_330_%E2%80%93_Conducting_Work_Procedures\" title=\"FAIS 330 \u2013 Conducting Work Procedures\">FAIS 330 \u2013 Conducting Work Procedures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_340_%E2%80%93_Conducting_Interviews\" title=\"FAIS 340 \u2013 Conducting Interviews\">FAIS 340 \u2013 Conducting Interviews<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_350_%E2%80%93_Review_and_Supervision\" title=\"FAIS 350 \u2013 Review and Supervision\">FAIS 350 \u2013 Review and Supervision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_360_%E2%80%93_Testimony\" title=\"FAIS 360 \u2013 Testimony\">FAIS 360 \u2013 Testimony<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_400_Series_Specialized_Areas\" title=\"FAIS 400 Series: Specialized Areas\">FAIS 400 Series: Specialized Areas<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_500_Series_Quality_Control\" title=\"FAIS 500 Series: Quality Control\">FAIS 500 Series: Quality Control<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#FAIS_600_Series_Reporting\" title=\"FAIS 600 Series: Reporting\">FAIS 600 Series: Reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Quick_Revision_Chart\" title=\"Quick Revision Chart\">Quick Revision Chart<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Difference_Between_Statutory_Audit_and_Forensic_Audit\" title=\"Difference Between Statutory Audit and Forensic Audit\">Difference Between Statutory Audit and Forensic Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#What_at_to_Donts_by_the_Forensic_Auditor\" title=\"What at to Don\u2019ts by the Forensic Auditor\">What at to Don\u2019ts by the Forensic Auditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Guidelines_on_Forensic_Audit_issued_by_Authorities_ie_RBI\" title=\"Guidelines on Forensic Audit issued by Authorities i.e RBI\">Guidelines on Forensic Audit issued by Authorities i.e RBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Master_Directions_on_Frauds%E2%80%94Classification_Reporting_by_banks_select_Financial_Institutions\" title=\"Master Directions on Frauds\u2014Classification &amp; Reporting by banks &amp; select Financial Institutions\">Master Directions on Frauds\u2014Classification &amp; Reporting by banks &amp; select Financial Institutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/carajput.com\/blog\/basic-responsibilities-liabilities-of-forensic-auditor\/#Forensic_Audit_Services_Application\" title=\"Forensic Audit Services &amp; Application\u00a0\">Forensic Audit Services &amp; Application\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-32769\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/F-Audit-.png\" alt=\"Basic Responsibilities &amp; Liabilities of Forensic Auditor\" width=\"879\" height=\"827\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/F-Audit-.png 555w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/F-Audit--300x282.png 300w\" sizes=\"(max-width: 879px) 100vw, 879px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Basic_Responsibilities_Liabilities_of_Forensic_Auditor\"><\/span><span style=\"color: #000080;\"><strong><u>Basic Responsibilities &amp; Liabilities of Forensic Auditor<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A forensic auditor must also be familiar with legal concepts and procedures, including the ability to differentiate between substance and form when grappling with any issue<\/li>\n<li>Help formulate recovery of funds misused and deriving the end beneficiary of diversion<\/li>\n<li>Preparing financial evidence and analysis and presenting in court against criminal activity<\/li>\n<li>Assisting in securing documentation necessary to support or rebut a claim<\/li>\n<li>Reviewing the factual situation and providing suggestions on alternative course of action<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"To_Dos_by_the_Forensic_Auditor\"><\/span><span style=\"color: #000080;\"><strong><u>To Do\u2019s by the Forensic Auditor<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A forensic auditor should Hint to be provided for further investigation in situation of limited evidence<\/li>\n<li>Match verbal indicators with physical behaviors during the Forensic Audit<\/li>\n<li>Forensic Audit Findings to be backed with evidences and support<\/li>\n<li>Disclaimers &amp; Limitations to be disclosed with respect to the scope of work under Forensic Audit<\/li>\n<li>A forensic auditor should regularly follow up for data via emails<\/li>\n<li>Reverifying all the data disclosed in the Audit reports, stock statements, etc.<\/li>\n<li>A forensic auditor should maintain proper records of collected of data from the client and target.<\/li>\n<li>Developing a theory of the case during the Forensic Audit<\/li>\n<li>A forensic auditor should Necessary written communication\/email with the borrower &amp; client\/target<\/li>\n<\/ul>\n<div>\n<h2><span class=\"ez-toc-section\" id=\"Forensic_Accounting_and_Investigation_Standards_FAIS_issued_by_ICAI\"><\/span><span style=\"color: #000080;\">Forensic Accounting and Investigation Standards (FAIS) issued by ICAI<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Institute of Chartered Accountants of India (ICAI) has issued the Forensic Accounting and Investigation Standards (FAIS) through its Digital Accounting and Assurance Board (DAAB). These standards provide a comprehensive framework for conducting forensic accounting and investigation engagements in a consistent, professional, and legally sustainable manner. The revised FAIS was released on 1 July 2023 and became mandatory for forensic engagements undertaken by ICAI members from that date onwards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Forensic_Auditing_Standards_issued_By_ICAI\"><\/span><span style=\"color: #000080;\"><strong>Forensic Auditing Standards issued By ICAI\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Institute of Chartered Accountants of India (ICAI) has released a set of forensic accounting and investigation standards in an effort to stop the growing problem of accounting, financial, and lending irregularities.<\/p>\n<p>The auditor&#8217;s responsibilities in negotiating the details of the audit engagement with management are addressed under this Revised Standard on Auditing. The SA establishes the requirements for a forensic accounting and investigation audit and the terms of an audit engagement and amendments therein and separates the management&#8217;s and auditors&#8217; responsibilities, among many other issues.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Purpose_of_FAIS\"><\/span><span style=\"color: #000080;\">Purpose of FAIS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FAIS were introduced in response to the increasing incidence of:<\/p>\n<ul>\n<li>Accounting irregularities<\/li>\n<li>Financial frauds<\/li>\n<li>Loan defaults and fund diversion<\/li>\n<li>Corporate misconduct<\/li>\n<li>Money laundering and related financial crimes<\/li>\n<\/ul>\n<p>The standards establish a structured methodology for carrying out forensic investigations and ensure that evidence collected during such assignments can withstand scrutiny by courts, regulators, and enforcement agencies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Objectives_of_FAIS\"><\/span><span style=\"color: #000080;\">Key Objectives of FAIS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The primary objectives of FAIS are:<\/p>\n<ol>\n<li>To establish minimum standards for conducting forensic accounting and investigation engagements.<\/li>\n<li>FAIS develops to enhance the quality, consistency, and credibility of forensic reports.<\/li>\n<li>To provide guidance to forensic professionals in planning, executing, documenting, and reporting investigations.<\/li>\n<li>FAIS originated to ensure uniformity in forensic practices across industries and sectors.<\/li>\n<li>To facilitate the collection and preservation of legally admissible evidence.<\/li>\n<li>FAIS to act as a benchmark for evaluating the performance of forensic professionals.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Stakeholders_Benefited_by_FAIS\"><\/span><span style=\"color: #000080;\">Stakeholders Benefited by FAIS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The standards are useful for various stakeholders, including:<\/p>\n<ul>\n<li>Banks and Financial Institutions<\/li>\n<li>Reserve Bank of India (RBI)<\/li>\n<li>Securities and Exchange Board of India (SEBI)<\/li>\n<li>Enforcement Directorate (ED)<\/li>\n<li>Serious Fraud Investigation Office (SFIO)<\/li>\n<li>Central Bureau of Investigation (CBI)<\/li>\n<li>Economic Offences Wing (EOW)<\/li>\n<li>Corporate Entities<\/li>\n<li>Insolvency Professionals<\/li>\n<li>Courts and Tribunals<\/li>\n<\/ul>\n<p>These stakeholders rely on forensic investigation reports for decision-making, regulatory actions, and legal proceedings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Structure_of_FAIS\"><\/span><span style=\"color: #000080;\">Structure of FAIS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The standards are classified into six series:<\/p>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 206px;\" width=\"782\">\n<tbody>\n<tr>\n<th><span style=\"color: #000080;\">Series<\/span><\/th>\n<th><span style=\"color: #000080;\">Subject Matter<\/span><\/th>\n<\/tr>\n<tr>\n<td>FAIS 100 Series<\/td>\n<td>Key Concepts<\/td>\n<\/tr>\n<tr>\n<td>FAIS-200 Series<\/td>\n<td>Engagement Management<\/td>\n<\/tr>\n<tr>\n<td>FAIS 300 Series<\/td>\n<td>Execution of Assignments<\/td>\n<\/tr>\n<tr>\n<td>FAIS-400 Series<\/td>\n<td>Specialized Areas<\/td>\n<\/tr>\n<tr>\n<td>FAIS 500 Series<\/td>\n<td>Quality Control<\/td>\n<\/tr>\n<tr>\n<td>FAIS-600 Series<\/td>\n<td>Reporting<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>The framework covers the entire lifecycle of a forensic engagement, starting from acceptance of the assignment and ending with the issuance of the final report.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Significance_of_FAIS\"><\/span><span style=\"color: #000080;\">Significance of FAIS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FAIS is significant because it:<\/p>\n<ul>\n<li>Promotes professional skepticism and objectivity.<\/li>\n<li>Establishes systematic procedures for fraud investigations.<\/li>\n<li>Enhances the reliability and defensibility of forensic reports.<\/li>\n<li>Provides consistency in investigation methodologies.<\/li>\n<li>Strengthens confidence among regulators, lenders, courts, and other stakeholders.<\/li>\n<li>Assists in uncovering fraud, corruption, asset misappropriation, fund diversion, and financial statement manipulation.<\/li>\n<\/ul>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Standard-wise_summary_of_all_individual_FAIS_standards_FAIS_100_to_FAIS_600_series\"><\/span><span style=\"color: #000080;\"><strong data-lexical-text=\"true\">Standard-wise summary of all individual FAIS standards (FAIS 100 to FAIS 600 series)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_100_Series_Key_Concepts\"><\/span><span style=\"color: #000080;\">FAIS 100 Series: Key Concepts<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These standards establish the fundamental principles governing forensic accounting and investigation engagements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_110_%E2%80%93_Nature_of_Engagement\"><\/span><span style=\"color: #000080;\">FAIS 110 \u2013 Nature of Engagement<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Objective: Defines what constitutes a forensic accounting and investigation engagement. following are key points:<\/p>\n<ul>\n<li>Distinguishes forensic engagement from statutory audit.<\/li>\n<li>Focuses on fact-finding and evidence gathering.<\/li>\n<li>Findings may be used in courts, tribunals, regulatory proceedings, and arbitration matters.<\/li>\n<li>The forensic professional reports findings and conclusions, not an audit opinion.<\/li>\n<\/ul>\n<p>How is a forensic audit different from a statutory audit?<\/p>\n<p>A statutory audit expresses an opinion on financial statements, whereas a forensic engagement investigates suspected wrongdoing and gathers legally defensible evidence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_120_%E2%80%93_Fraud_Risk_Assessment\"><\/span><span style=\"color: #000080;\">FAIS 120 \u2013 Fraud Risk Assessment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Identify fraud risks and red flags before commencing investigation.<\/li>\n<li>Covers: <span style=\"font-size: 16px;\">Risk identification, <\/span><span style=\"font-size: 16px;\">Fraud scenarios, <\/span><span style=\"font-size: 16px;\">Control weaknesses, likelihood assessment,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Impact assessment<\/span><\/li>\n<li>Practical Examples: <span style=\"font-size: 16px;\">Related-party transactions, <\/span><span style=\"font-size: 16px;\">Round-tripping, <\/span><span style=\"font-size: 16px;\">Bogus purchases, <\/span><span style=\"font-size: 16px;\">Diversion of funds and <\/span><span style=\"font-size: 16px;\">Fake vendors<\/span><\/li>\n<li>Importance: Acts as the foundation for planning the investigation.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_130_%E2%80%93_Laws_and_Regulations\"><\/span><span style=\"color: #000080;\">FAIS 130 \u2013 Laws and Regulations<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Ensure compliance with applicable laws.<\/li>\n<li>Relevant Laws: <span style=\"font-size: 16px;\">Companies Act, 2013; <\/span><span style=\"font-size: 16px;\">Prevention of Corruption Act; <\/span><span style=\"font-size: 16px;\">PMLA; <\/span><span style=\"font-size: 16px;\">Indian Evidence Act; <\/span><span style=\"font-size: 16px;\">Information Technology Act; <\/span><span style=\"font-size: 16px;\">GST Laws; and <\/span><span style=\"font-size: 16px;\">FEMA<\/span><\/li>\n<li>Requirement: The forensic professional should understand the legal implications of evidence gathering and reporting<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_140_%E2%80%93_Applying_Hypotheses\"><\/span><span style=\"color: #000080;\"><strong>FAIS 140 \u2013 Applying Hypotheses<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Use investigative hypotheses to direct forensic procedures.<\/li>\n<li>Example: Hypothesis: <span style=\"font-size: 16px;\">&#8220;Management diverted company funds through shell companies.&#8221;<\/span><\/li>\n<li>The professional gathers evidence either to prove the hypothesis or to disprove the hypothesis.<\/li>\n<li>Benefit: Ensures a scientific and unbiased investigation approach.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_200_Series_Engagement_Management\"><\/span><span style=\"color: #000080;\">FAIS 200 Series: Engagement Management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These standards deal with acceptance, administration, and management of forensic engagements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_210_%E2%80%93_Engagement_Objectives\"><\/span><span style=\"color: #000080;\">FAIS 210 \u2013 Engagement Objectives<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Clearly define the <span style=\"font-size: 16px;\">Purpose, <\/span><span style=\"font-size: 16px;\">Expected outcomes, <\/span><span style=\"font-size: 16px;\">scope, and <\/span><span style=\"font-size: 16px;\">Deliverables<\/span><\/li>\n<li>Examples: Objectives may include <span style=\"font-size: 16px;\">Determining fraud amount, <\/span><span style=\"font-size: 16px;\">Establishing diversion of funds, <\/span><span style=\"font-size: 16px;\">identifying responsible persons. <\/span><span style=\"font-size: 16px;\">Quantifying damages.<\/span><\/li>\n<li>Importance: Prevents scope creep.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_220_%E2%80%93_Engagement_Acceptance_and_Appointment\"><\/span><span style=\"color: #000080;\">FAIS 220 \u2013 Engagement Acceptance and Appointment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Determine whether to accept the assignment.<\/li>\n<li>Areas Evaluated: <span style=\"font-size: 16px;\">Independence, <\/span><span style=\"font-size: 16px;\">Competence, <\/span><span style=\"font-size: 16px;\">Resources, <\/span><span style=\"font-size: 16px;\">Conflict of interest, <\/span><span style=\"font-size: 16px;\">Ethical considerations<\/span><\/li>\n<li>Documentation: An engagement letter should contain <span style=\"font-size: 16px;\">scope, <\/span><span style=\"font-size: 16px;\">responsibilities, <\/span><span style=\"font-size: 16px;\">deliverables, <\/span><span style=\"font-size: 16px;\">timeline, and <\/span><span style=\"font-size: 16px;\">limitations.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_230_%E2%80%93_Using_Work_of_an_Expert\"><\/span><span style=\"color: #000080;\">FAIS 230 \u2013 Using Work of an Expert<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Guide use of specialists.<\/li>\n<li>Experts May Include <span style=\"font-size: 16px;\">cyberforensic experts, <\/span><span style=\"font-size: 16px;\">Handwriting experts, <\/span><span style=\"font-size: 16px;\">Valuation experts, <\/span><span style=\"font-size: 16px;\">Legal experts and <\/span><span style=\"font-size: 16px;\">Data analysts<\/span><\/li>\n<li>Responsibility:\u00a0Even when experts are used, ultimate responsibility remains with the forensic professional<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_240_%E2%80%93_Engaging_with_Agencies\"><\/span><span style=\"color: #000080;\">FAIS 240 \u2013 Engaging with Agencies<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Interaction with external agencies.<\/li>\n<li>Agencies like <span style=\"font-size: 16px;\">Banks, <\/span><span style=\"font-size: 16px;\">SFIO, <\/span><span style=\"font-size: 16px;\">CBI, <\/span><span style=\"font-size: 16px;\">ED, police authorities,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Regulators<\/span><\/li>\n<li>Focus:\u00a0Proper communication, coordination, and evidence sharing.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_250_%E2%80%93_Stakeholder_Communication\"><\/span><span style=\"color: #000080;\">FAIS 250 \u2013 Stakeholder Communication<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective:\u00a0Manage communication with stakeholders.<\/li>\n<li>Stakeholders: <span style=\"font-size: 16px;\">Audit Committee, <\/span><span style=\"font-size: 16px;\">Management, <\/span><span style=\"font-size: 16px;\">Regulators, <\/span><span style=\"font-size: 16px;\">Banks and <\/span><span style=\"font-size: 16px;\">Law enforcement authorities<\/span><\/li>\n<li>Requirement:\u00a0Communication must be factual, objective, and confidential.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_300_Series_Executing_Assignments\"><\/span><span style=\"color: #000080;\">FAIS 300 Series: Executing Assignments<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Often considered the most important series for practical forensic work.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_310_%E2%80%93_Planning_the_Assignment\"><\/span><span style=\"color: #000080;\">FAIS 310 \u2013 Planning the Assignment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Develop an effective investigation plan. Includes: <span style=\"font-size: 16px;\">Investigation strategy, <\/span><span style=\"font-size: 16px;\">Resources, <\/span><span style=\"font-size: 16px;\">Timelines, evidence sources,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Risk areas<\/span><\/li>\n<li>Outcome: A documented investigation plan.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_320_%E2%80%93_Evidence_and_Documentation\"><\/span><span style=\"color: #000080;\">FAIS 320 \u2013 Evidence and Documentation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Objective: Obtain sufficient, reliable, and admissible evidence. The following are types:<\/p>\n<ul>\n<li>Documentary Evidence: Ledger accounts, vouchers, and Contracts<\/li>\n<li>Digital Evidence: Emails, server logs, and Mobile records<\/li>\n<li>Third-Party Evidence: Confirmations, Bank records<\/li>\n<li>Core Principle: <span style=\"font-size: 16px;\">If it is not documented, it is not done.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_330_%E2%80%93_Conducting_Work_Procedures\"><\/span><span style=\"color: #000080;\">FAIS 330 \u2013 Conducting Work Procedures<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Includes <span style=\"font-size: 16px;\">Data analytics, <\/span><span style=\"font-size: 16px;\">Trend analysis, <\/span><span style=\"font-size: 16px;\">Ratio analysis, transaction tracing,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Beneficial ownership analysis<\/span><\/li>\n<li>Example: Tracing loan proceeds from Bank A \u2192 Company B \u2192 Related Party \u2192 Promoter Account.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_340_%E2%80%93_Conducting_Interviews\"><\/span><span style=\"color: #000080;\">FAIS 340 \u2013 Conducting Interviews<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective:\u00a0Obtain information through structured discussions.<\/li>\n<li>Types: <span style=\"font-size: 16px;\">Witness interviews, employee interviews,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Suspect interviews<\/span><\/li>\n<li>Best Practices: <span style=\"font-size: 16px;\">Prepare questionnaires, <\/span><span style=\"font-size: 16px;\">document responses. Maintain<\/span><span style=\"font-size: 16px;\">\u00a0neutrality and <\/span><span style=\"font-size: 16px;\">avoid intimidation.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_350_%E2%80%93_Review_and_Supervision\"><\/span><span style=\"color: #000080;\">FAIS 350 \u2013 Review and Supervision<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective: Ensure investigation quality.<\/li>\n<li>Includes: <span style=\"font-size: 16px;\">Review of evidence,\u00a0<\/span><span style=\"font-size: 16px;\">Review of findings,\u00a0<\/span><span style=\"font-size: 16px;\">Team supervision and\u00a0<\/span><span style=\"font-size: 16px;\">Resolution of inconsistencies<\/span><\/li>\n<li>Importance: Reduces risk of incorrect conclusions.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_360_%E2%80%93_Testimony\"><\/span><span style=\"color: #000080;\">FAIS 360 \u2013 Testimony<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Objective is to\u00a0provide guidance when appearing before courts, tribunals, or arbitrators.<\/li>\n<li>Requirements: <span style=\"font-size: 16px;\">Present facts clearly, <\/span><span style=\"font-size: 16px;\">remain independent, <\/span><span style=\"font-size: 16px;\">support conclusions with evidence, and <\/span><span style=\"font-size: 16px;\">withstand cross-examination.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_400_Series_Specialized_Areas\"><\/span><span style=\"color: #000080;\">FAIS 400 Series: Specialized Areas<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Designed for special and emerging forensic situations. The following are common areas covered:<\/p>\n<ul>\n<li>Digital Forensics: <span style=\"font-size: 16px;\">Mobile devices, <\/span><span style=\"font-size: 16px;\">Email evidence, server logs,<\/span><span style=\"font-size: 16px;\">\u00a0and <\/span><span style=\"font-size: 16px;\">Cloud records<\/span><\/li>\n<li>Asset Tracing: Tracking <span style=\"font-size: 16px;\">Diversion of funds, <\/span><span style=\"font-size: 16px;\">Layering transactions, <\/span><span style=\"font-size: 16px;\">Benami holdings and <\/span><span style=\"font-size: 16px;\">Shell entities<\/span><\/li>\n<li>Anti-Money Laundering Investigations: Identification of Placement, Layering and Integration<\/li>\n<li>Litigation Support:\u00a0Assistance in Damages claims, Arbitration and Commercial disputes<\/li>\n<li>Expert Witness Services:\u00a0Professional opinions before legal forums.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_500_Series_Quality_Control\"><\/span><span style=\"color: #000080;\">FAIS 500 Series: Quality Control<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The objective is to maintain consistency and reliability in forensic engagements. Key Components<\/p>\n<ul>\n<li>Leadership Responsibilities: Management should promote quality culture.<\/li>\n<li>Ethical Compliance:\u00a0Ensure integrity, Objectivity, confidentiality, and Professional behavior<\/li>\n<li>Human Resources:\u00a0Team must possess Skill, training, and Experience<\/li>\n<li>Monitoring: Periodic review of completed engagements.<\/li>\n<li>Documentation Review: Ensure all conclusions are properly supported<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"FAIS_600_Series_Reporting\"><\/span><span style=\"color: #000080;\">FAIS 600 Series: Reporting<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The final output of the forensic assignment. This series governs reporting of findings and conclusions.\u00a0Key Elements of Report<\/p>\n<ul>\n<li>Executive Summary: Why the assignment was conducted.<\/li>\n<li>Scope: What was examined.<\/li>\n<li>Methodology: How the investigation was performed.<\/li>\n<li>Findings: Facts identified.<\/li>\n<li>Evidence: Support for findings.<\/li>\n<li>Limitations: Restrictions encountered.<\/li>\n<li>Conclusions: Reasoned conclusions based on evidence.<\/li>\n<li>Annexures Like <span style=\"font-size: 16px;\">Interview notes, <\/span><span style=\"font-size: 16px;\">Transaction trails, and <\/span><span style=\"font-size: 16px;\">Supporting documents<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quick_Revision_Chart\"><\/span><span style=\"color: #000080;\">Quick Revision Chart<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 213px;\" width=\"815\">\n<tbody>\n<tr>\n<th>Series<\/th>\n<th>Subject<\/th>\n<th>Key Focus<\/th>\n<\/tr>\n<tr>\n<td>FAIS 100<\/td>\n<td>Key Concepts<\/td>\n<td>Nature, Fraud Risk, Laws, Hypothesis<\/td>\n<\/tr>\n<tr>\n<td>FAIS-200<\/td>\n<td>Engagement Management<\/td>\n<td>Acceptance, Objectives, Experts, Agencies<\/td>\n<\/tr>\n<tr>\n<td>FAIS 300<\/td>\n<td>Execution<\/td>\n<td>Planning, Evidence, Interviews, Review<\/td>\n<\/tr>\n<tr>\n<td>FAIS-400<\/td>\n<td>Specialized Areas<\/td>\n<td>Digital Forensics, AML, Asset Tracing<\/td>\n<\/tr>\n<tr>\n<td>FAIS 500<\/td>\n<td>Quality Control<\/td>\n<td>Supervision, Ethics, Monitoring<\/td>\n<\/tr>\n<tr>\n<td>FAIS-600<\/td>\n<td>Reporting<\/td>\n<td>Findings, Conclusions, Evidence<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Difference_Between_Statutory_Audit_and_Forensic_Audit\"><\/span><span style=\"color: #000080;\">Difference Between Statutory Audit and Forensic Audit<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 266px;\" width=\"849\">\n<tbody>\n<tr>\n<th>Particulars<\/th>\n<th>Statutory Audit<\/th>\n<th>Forensic Audit<\/th>\n<\/tr>\n<tr>\n<td>Objective<\/td>\n<td>Express opinion on financial statements<\/td>\n<td>Investigate fraud\/suspicion<\/td>\n<\/tr>\n<tr>\n<td>Scope<\/td>\n<td>General<\/td>\n<td>Specific<\/td>\n<\/tr>\n<tr>\n<td>Skepticism Level<\/td>\n<td>Normal audit skepticism<\/td>\n<td>Very high skepticism<\/td>\n<\/tr>\n<tr>\n<td>Evidence<\/td>\n<td>Audit evidence<\/td>\n<td>Legal evidence<\/td>\n<\/tr>\n<tr>\n<td>Outcome<\/td>\n<td>Audit opinion<\/td>\n<td>Investigation report<\/td>\n<\/tr>\n<tr>\n<td>Use<\/td>\n<td>Shareholders<\/td>\n<td>Courts, banks, regulators<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_at_to_Donts_by_the_Forensic_Auditor\"><\/span><span style=\"color: #000080;\"><strong><u>What at to Don\u2019ts by the Forensic Auditor<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Incomplete\/partial disclosures of limitations, clause and Disclaimers<\/li>\n<li>Forensic Auditor Don\u2019t make assumptions<\/li>\n<li>Delay in submitting reports<\/li>\n<li>Forensic Auditor Should not be judgmental<\/li>\n<li>Collecting data illegally or without authorization<\/li>\n<li>Relying on data\/information from unknown sources<\/li>\n<li>Submitting report without annexures<\/li>\n<li>Forensic Auditor Using the target\u2019s computers to work<\/li>\n<li>No direct dependence on other work\/report of Professionals<\/li>\n<li>Direct working on the original data<\/li>\n<li>Not maintaining confidentiality of the Forensic Audit<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Guidelines_on_Forensic_Audit_issued_by_Authorities_ie_RBI\"><\/span><span style=\"color: #000080;\"><u>Guidelines on <\/u><\/span><span style=\"color: #000080;\"><strong><u>Forensic Audit <\/u><\/strong><\/span><span style=\"color: #000080;\"><strong><u>issued <\/u><\/strong><u>by Authorities i.e RBI<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 388px;\" width=\"793\">\n<tbody>\n<tr>\n<td width=\"347\"><em>Declaring the company as fraudulent with reference to the circular: Criteria under which class is specified: RESERVE<\/em>\u00a0BANK OF INDIA Master Circular on Frauds Classification and Reporting 1 July 2015<\/td>\n<td width=\"347\"><em>A company declared as a willful defaulter with reference to the circular: Criteria\/under which class is specified: <\/em>RESERVE BANK OF INDIA Master Circular on Wilful Defaulter 1 July 2015<\/td>\n<\/tr>\n<tr>\n<td width=\"347\"><em>The Classifying the transaction resulting in fraud\u2014RESERVE<\/em>\u00a0BANK OF INDIA \u00a0Circular on Framework for dealing with loan frauds (Early Warning Signs) 7 May 2015<\/td>\n<td width=\"347\"><em>Concluding the report pertaining to Fraud\/ No Fraud\u2014IBA<\/em>\u00a0Circular on Forensic Audit Report 11 June 2019<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"693\"><em>Classifying the account due to non-cooperation\u2014RESERVE<\/em> BANK OF INDIA \u00a0Circular on Non-Cooperative Borrowers 22 December 2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Master_Directions_on_Frauds%E2%80%94Classification_Reporting_by_banks_select_Financial_Institutions\"><\/span><strong><span style=\"color: #000080;\">Master Directions on Frauds\u2014Classification &amp; Reporting by banks &amp; select Financial Institutions<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Master Circular No. RBI\/DBS\/2016-17\/28 DBS.CO.CFMC.BC.No.1\/23.04.001\/2016-17 dated 1st July<br \/>\n2016<\/p>\n<p>Accounting and forensic auditing play a significant role in locating instances of fraud and corruption due to their distinct qualities as one of the particular professions in accounting. To combat the spread of corruption, several nations are now heavily implementing accounting and forensic audits. Businesses can greatly benefit from forensic audits and accounting implementation.<\/p>\n<div>The Forensic Accounting and Investigation Standards (FAIS) issued by ICAI represent a pioneering initiative in the field of forensic accounting. They provide chartered accountants with a structured framework for conducting forensic engagements with professionalism, independence, objectivity, and due care. The standards serve as an important tool for combating corporate frauds and financial irregularities while ensuring that investigative findings are credible, consistent, and legally sustainable.<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Forensic_Audit_Services_Application\"><\/span><span style=\"color: #000080;\"><strong><u>Forensic Audit Services &amp; Application\u00a0<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With the worldwide increase in financial crimes, forensic auditing has become more crucial to ensure the financial growth of organisations and the economy. Some of the most popular areas to investigate in a forensic audit include the following:<\/p>\n<ul>\n<li>Extortion<\/li>\n<li>Corruption Incidents<\/li>\n<li>Possibility for conflict of interest<\/li>\n<li>Deceptive Financial Statements<\/li>\n<li>Misuse of assets<\/li>\n<\/ul>\n<p>Our investigation uncovered irregularities in the concession&#8217;s awarding, but it did not turn up any proof that the syndicate of lenders&#8217; equity or finances were used to pay bribes or participate in other illegal activity. Rajput Jain &amp; Associates&#8217; forensic audit Services provide one-stop support for all compliance-related support services.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-23838\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/Basic-Responsibilities-Liabilities-of-Forensic-Auditor..png\" alt=\"Forensic Auditor\" width=\"934\" height=\"734\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/Basic-Responsibilities-Liabilities-of-Forensic-Auditor..png 934w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/Basic-Responsibilities-Liabilities-of-Forensic-Auditor.-300x236.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/Basic-Responsibilities-Liabilities-of-Forensic-Auditor.-768x604.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/Basic-Responsibilities-Liabilities-of-Forensic-Auditor.-800x629.png 800w\" sizes=\"(max-width: 934px) 100vw, 934px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-24872\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/15e06868-2cc4-497c-b87b-efef2790bd0a.jpg\" alt=\"Transaction Audit\" width=\"848\" height=\"1817\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/15e06868-2cc4-497c-b87b-efef2790bd0a.jpg 560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/15e06868-2cc4-497c-b87b-efef2790bd0a-140x300.jpg 140w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/12\/15e06868-2cc4-497c-b87b-efef2790bd0a-478x1024.jpg 478w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><\/p>\n<ul>\n<li>Rajput Jain &amp; Associates also conducted a forensic audit, investigating thoroughly the company&#8217;s continuing operations (revenue and expenses), and made recommendations for improvements that the management of the company may make to the monthly and annual reporting to the syndicate. <span style=\"font-family: arial, sans-serif;\"><span lang=\"EN-IN\"><span style=\"color: #000000;\">We are happy to assist you in following types of forensic Audit-like regulatory audit,<\/span><\/span><\/span><span style=\"font-family: arial, sans-serif;\">\u00a0<\/span><span style=\"font-family: arial, sans-serif;\">Proprietary Audit,\u00a0<\/span><span style=\"font-family: arial, sans-serif;\">Investigative Audit,\u00a0<\/span><span style=\"font-family: arial, sans-serif;\">Data &amp; Financial Audit, transaction audit, and<\/span><span style=\"font-family: arial, sans-serif;\">\u00a0<\/span><span style=\"color: #444444; font-family: arial, sans-serif;\">Miscellaneous Audit<\/span><\/li>\n<li>Our strength lies in bringing together a team of highly qualified, skilled, and motivated professionals who are encouraged to lead, innovate, and excel<span style=\"color: #000000;\">. Rajput Jain &amp; Associates are a team of professionals\u2014CAs, CMAs, FAFDs, IT experts, and industry experts\u2014with a combined experience of 50+ man-years.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Basic Responsibilities &amp; Liabilities of Forensic Auditor A forensic auditor must also be familiar with legal concepts and procedures, including the ability to differentiate between substance and form when grappling with any issue Help formulate recovery of funds misused and deriving the end beneficiary of diversion Preparing financial evidence and analysis and presenting in court &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10211],"tags":[10083],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23836"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=23836"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23836\/revisions"}],"predecessor-version":[{"id":23843,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23836\/revisions\/23843"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=23836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=23836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=23836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}