The Central Council of the Institute of Chartered Accountants of India (ICAI) in its 422nd Meeting held on 30th June 2023 has approved the Forensic Accounting & Investigation Standards and the Implementation Guide on Forensic Accounting and Investigation Standards (FAIS) and stated that these Standards will be mandatory for all engagements beginning on or after 1st July 2023 Council Decisions.
FAIS comprises a set of guidelines and best practices designed by industry experts to ensure that forensic accounting and investigation services are conducted with the highest level of ethics, professionalism, and integrity. The standards cover various aspects of forensic accounting and investigation, including evidence collection, analysis, and reporting.
“ICAI is the first Accounting Body in the world to release the detailed Forensic Accounting and Investigation Standards (FAIS) for its members & other stakeholders. The FAIS is principle based and will stipulate certain basic (but mandatory) requirements to be fulfilled by members who undertake Forensic assignments. FAIS will also provide recommendatory guidance on the procedures which may be followed in completing such assignments.
Implementing FAIS can bring numerous benefits to businesses and organizations. One of the most significant advantages is an improved quality of services provided. By adhering to the best practices outlined in the FAIS, professionals can produce more accurate and reliable findings, which can assist organizations in making informed decisions.
Organizations can also benefit from increased credibility by using the services of forensic accountants and investigators who follow these standards. Another benefit of implementing forensic accounting and investigation standards is that organizations can comply with legal and regulatory requirements.
By following these standards, professionals can improve the quality of their services, enhance their credibility, build trust, and comply with legal and regulatory requirements, benefiting organizations that receive accurate and reliable findings and reports. The Institute of Chartered Accountants of India (ICAI) announced that effective from 1st July 2023, the Forensic Accounting and Investigation Standards (FAIS) will become mandatory. This move is significant and aims to improve the quality of forensic accounting and investigation services provided in India.
Read More: ICAI to mandate Forensic Accounting and Investigation Standards from July 1
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