Page 345 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO- FA.080) FORENSIC ACCOUNTING AND INVESTIGATION REPORT
The Forensic Accounting and Investigation Standard (FAIS or "Standard") 510 outlines the Professional's duty
to provide a written report to stakeholders after completing the assignment. This report summarizes the
procedures conducted and their findings. Given that one engagement can comprise several assignments, a
distinct report may be required for each task.
Written Report: The Professional will provide a report conveying the assignment's results clearly. This report
will be based on reliable and relevant evidence, ensuring clarity and precision.
Key Elements of the Report: The Professional shall consider the inclusion of the following key elements in
the report (indicative list):
- Title, addressee and distribution list (if any)
- Scope and objectives of the assignment
- An Executive Summary of the results, covering all important aspects and the essence of the findings
- The fact that the assignment has been conducted in accordance with FAIS, or any material departures
therefrom
- Approach and broad work procedures undertaken
- List of findings supported by key evidences, sources of evidences, and other relevant matter;
- Reference to use of an expert, where applicable
- Assumptions, limitations and disclaimers of the assignment
- Conclusions (if any) drawn from the assessment undertaken.

Draft Report Discussion: If the engagement necessitates discussing findings with the subject party before
finalizing, the report will include their responses. The Principles of Natural Justice call for discussing
observations with the subject party. Sometimes, Primary Stakeholders handle this through internal procedures
(e.g., disciplinary committee). Occasionally, the Professional might discuss draft findings during interviews
with the subject. If discussions with the subject party are required, their responses will be incorporated in the
report.
Addressee and Distribution: The report will be directed to the Primary Stakeholders and shared with other
stakeholders as needed or permitted.
Report Content: Though there's no fixed format for the report as per this Standard, it must contain key
elements such as the assignment's purpose, work scope, limitations, gathered facts, and conclusions. If
stakeholders or regulations dictate a specific format, the Professional will adhere to it, incorporating the
essential elements.
Assumptions and Limitations: The Professional will outline significant assumptions made during the
assignment. They might also face constraints limiting their methodologies, such as limited support, restricted
access to resources, or short timelines. These disclaimers will be included in the report. The report won't make
judgments on guilt or innocence. Its purpose is to present facts and circumstances to assist stakeholders or
support further investigations.
Report Timelines: The report should be delivered within the agreed-upon timeframe. Depending on the
engagement, the Professional might issue interim reports without hindering the investigation. These interim
reports adhere to this Standard.

(CNO- FA.100) OVERVIEW OF FORENSIC ACCOUNTING AND INVESTIGATION STANDARDS
(FAIS).
ICAI's Mandate
- The Institute of Chartered Accountants of India (ICAI) was established with mandates, including “Ensuring
Standards of Performance of its Members”.
- ICAI introduced the “Forensic Accounting and Investigation Standards (FAIS).
Purpose of FAIS

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