Sebi empanels 16 entities to conduct forensic audit

New Delhi: Markets regulator Sebi has empanelled as many as 16 entities — including BDO India, Ernst & Young and Deloitte Touche Tohmatsu India — for conducting forensic audits of financial statements of listed companies as part of efforts to curb frauds. The other empanelled entities are — Chaturvedi & Co, Chokshi & Chokshi LLP, Grant Thornton Bharat LLP, Haribhakti & Co. LLP, KPMG Assurance And Consulting Services LLP, Mukund M Chitale & Co and Protiviti India Member Pvt Ltd, according to a public notice.

In addition, Rajvanshi & Associates, Ravi Rajan & Co LLP, SKVM & Company, Suresh K Jha & Co, T R Chadha & Co LLP and V Singhi & Associates have been selected to conduct the forensic audits, it added.

Securities and Exchange Board of India (Sebi), in May, invited applications from eligible CA (Chartered Accountant) firms “for empanelment to take up assignments relating to forensic audit of financial statements of listed companies”.

Pursuant to the completion of the empanelment process, these CA firms/companies have been empanelled.

In recent months, Sebi has ordered a forensic audit of certain companies.

In October 2020, Sebi asked listed companies to make disclosures about the initiation of a forensic audit to stock exchanges as part of an effort to address the gaps in the availability of information.

Under the framework, listed entities need to make disclosures about the fact of initiation of a forensic audit along with the name of the entity initiating such audit and reasons for the same, if available, to the stock exchanges.

Further, the companies are required to disclose the final forensic audit report, other than for forensic audit initiated by regulatory or enforcement agencies, along with comments of the management, if any.