Eight new Forensic Accounting and Investigation Standards (FAIS) were proposed by the Digital Accounting and Assurance Board (DAAB) of ICAI. It requires forensic auditors to provide precise and unambiguous reports. The new standards will likely render some of the existing forensic audit reports untenable, especially if the lenders have used ambiguous and inconclusive reports to classify borrower loan accounts as fraud. These reports also must be backed by reliable evidence and relevant documents.
There currently lacks specific standards and guidelines for monitoring and regulating the functions of forensic audit. Therefore, different forensic audit expert follow different rules and procedures when it comes to conducting forensic audit. The present reports are based on these firmsÂ’ individual judgements.