Forensic Auditors for listed companies to be Appointed by SEBI
The Securities and Exchange Board of India in an effort to curb fraudulent activities is looking to appoint forensic auditors to audit the financial statements of the listed companies. SEBI has asked for applications from Chartered Accountant firms so that they can take up assignments related to forensic audits.
Criteria of the applicants
The applicants should have minimum 10 years of experience in the field of forensic audit and auditing. The applying CA firm should also have at least 10 directors or partners and out of them, at least 5 should be involved in works related to forensic audit. Any firm that has disciplinary actions initiated against them are also not eligible to apply. Also the firms applying should have a minimum of 20 full time employees having qualification and experience in the forensic audit sector. The applicants should also have undertaken at least 15 forensic audits in the past three years and out of them 3 such audits should have been assigned by regulatory bodies, government agencies or any public sector enterprise. In addition to these, the total revenue of the firm must be at least Rs 1 crore received from forensic auditing assignments.
It is a special practice of accounting that investigates whether any firm has engaged in financial reporting frauds. Forensic auditors are hired to engage in forensic auditing of a firm.
Securities and Exchange Board of India (SEBI) is a regulatory body under the ambit of the Minister of Finance. It regulates the Indian securities market. SEBI was formed in the year 1988 and statutory powers were given to SEBI in 1992 under the SEBI Act, 1992. It’s headquarter is located in Mumbai and Ajay Tyagi is the current chairman of SEBI.