The Institute of Chartered Accountants of India (ICAI), through its Digital Accounting and Assurance Board (DAAB), has released an Exposure Draft proposing a comprehensive revision of the Forensic Accounting and Investigation Standards (FAIS) and its accompanying Implementation Guide.
1. Purpose of the Revision
The proposed revisions are aimed at enhancing the professional framework that governs forensic accounting and investigation engagements. The ICAI seeks to align the standards with:
- Emerging best practices in forensic accounting
- Evolving regulatory expectations
- The need for clearer and more actionable implementation guidance
2. Key Highlights of the Revised Standards
- Structured Format and Enhanced Clarity – The revised FAIS adopts a more structured and user-friendly format to ensure better comprehension and practical utility for professionals engaged in forensic assignments.
- Separation from Statutory Audits – A strong emphasis has been placed on distinguishing forensic investigations from statutory audits, thereby minimising confusion and ensuring that engagements are appropriately categorised and communicated.
- Discouragement of the Term “Forensic Audit” – To maintain professional clarity and integrity, the ICAI discourages the use of the term “forensic audit”, as it may incorrectly imply a statutory or regulatory audit requirement.
- No Additional Compliance Burden – The revised standards do not introduce new requirements. Instead, they focus on streamlining guidance to support better implementation of existing principles.
3. Call for Public Comments
The ICAI has invited public comments and stakeholder feedback on the Exposure Draft. This inclusive approach is designed to ensure the final version of the standards reflects diverse perspectives and is practically implementable.
- Deadline for Comments – June 19, 2025
- Who Can Contribute – Practitioners, firms, academic professionals, regulators, and other stakeholders
4. Significance of the Revision
This initiative reaffirms ICAI’s commitment to upholding the highest standards of integrity, transparency, and professionalism in forensic engagements. It reflects a proactive step in modernising the forensic accounting landscape in India in line with global standards.
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