The Evolution and Current State of Forensic Accounting in India
Forensic accounting, a specialized area of accounting that deals with the investigation and analysis of financial data to detect economic crimes, has been gradually making its presence felt in India. The journey of forensic accounting in the country can be traced back to 2003, when the first forensic accounting website, Indiaforensic, came into existence. This marked the beginning of a new era in the field, bringing with it increased awareness and professional standards.
The Birth of Forensic Accounting in India
Dr. Mayur Joshi, a co-founder of Indiaforensic, provided the initial definition of forensic accounting in 2003. This definition was pivotal in shaping the understanding and adoption of forensic accounting principles in India. Over the subsequent years, the term and practice of forensic accounting gained traction, particularly in the wake of the entry of the Institute of Chartered Accountants of India (ICAI).
The Role of ICAI in Promoting Forensic Accounting
The ICAI played a crucial role in expanding the horizons of forensic accounting in India. They lobbied with the Indian Banks Association to get a few firms empaneled for forensic audits. However, as of now, the list of these firms seems to be non-existent, indicating a shift in the landscape. Nevertheless, there are many Certified Forensic Accounting Professionals (CFAP) working in various companies and banks, handling different fraud investigation assignments. These professionals are becoming increasingly influential in identifying malpractices within the accounting and auditing sectors.
The Current Landscape of Forensic Accounting in India
As of the latest data, there are around 72 Chartered Accountant (CA) firms empaneled to conduct forensic audits of exposures up to Rs 50 crores. Additionally, there are 39 CA firms empaneled for conducting forensic audits of exposures over Rs 50 crores. This setup highlights the growing demand for forensic auditing services, particularly in larger organizations and financial institutions.
Opportunities for Aspiring Professionals
Candidates who are neither partners nor qualified assistant in any CA firm and are interested in building a long-term practice with exposure to forensic audit can consider reaching out. Detailed resumes, membership numbers, and relevant experience should be provided for evaluation.
For those interested in delving deeper into the world of forensic accounting, resources such as training programs, certification courses, and industry associations can provide valuable insights and certifications. These resources can help aspiring professionals build a robust foundation in the field and stay updated with the latest developments.