Forensic audits of listed companies

Forensic audits of listed companies

Question : SEBI will compile auditor list to do forensic audit of listed companies. Accordingly, which of the following staement is correct ?

  1. The applying firm should have at least ten years of experience in the field of forensic audit.
  2. Applicant firm should have at least 20 full-time employees
  3. The applicant should have had experience of undertaking at least 15 forensic audits in past three years and at least three such audits should have been undertaken upon assignment by the regulatory body or government agency or public sector enterprise.
  4. In addition, total revenue of the firm from forensic audit assignments in the last three financial years must be at least Rs 1 crore.
    (A) Only 1. & 2.
    (B) Only 3. & 4.
    (C) Only 1.,2. & 4.
    (D) All above
    Ans.(D)
    Related facts
  • SEBI will compile auditor list to do forensic audit of listed companies.
  • This announcement has been made in a recent(May 2021) public notice issued by SEBI.
  • Eligibility criteria
  • Eligibility criteria has been disclosed by SEBI and that is as follows —
  1. The applying firm should have at least ten years of experience in the field of forensic audit.
  2. Applicant firm should have at least 20 full-time employees
  3. The applicant should have had experience of undertaking at least 15 forensic audits in past three years and at least three such audits should have been undertaken upon assignment by the regulatory body or government agency or public sector enterprise.
  4. In addition, total revenue of the firm from forensic audit assignments in the last three financial years must be at least Rs 1 crore.

By — Pankaj Pandey.

Link:
https://www.business-standard.com/article/markets/sebi-to-empanel-auditors-to-conduct-forensic-audits-of-listed-companies-121052501141_1.html