SEBI To Empanel Auditors To Conduct Forensic Audits Of Listed Companies

The Securities and Exchange Board of India has decided to appoint auditors for forensic audits of financial statements of listed companies and checking frauds.

There have been concerns voiced over certain auditors for being negligent while examining books of listed firms with various inconsistencies in financial statements being ignored. The move comes amid SEBI ordering forensic audit of a slew of companies including Fortis Healthcare.

The markets regulator has now invited applications from eligible Chartered Accountacy firms for empanelment to take up assignments relating to forensic audits of earnings.

SEBI’s Eligibility Criteria:

• Minimum 10 years of experience in auditing or forensic audit.
• Should have at least five partners or directors involved in forensic audit related work.

Besides, the applicant should have employed at least 10 persons, having relevant qualification, experience and expertise in the field of forensic audit and should have had experience of forensic audit with any regulatory body, or government agency or public sector enterprise