Forensic Investigation and Fraud Reporting in India

Frauds and economic crime rates remain at a record high, impacting more and more companies in diverse ways than ever before. The only way to reduce the impact of such frauds is to get a detailed understanding of the subject and adopt preventive measures instead of reactive measures.
Fraud reporting is one of the most important themes in the current corporate governance scenario. Considering the importance of this area, various regulators have come out with reporting requirements in the recent past with an aim to ensure adequate and timely reporting of frauds. In this context, understanding of the roles and responsibilities of various stakeholders is pertinent.

This book is an attempt by authors to provide a comprehensive publication on the two specialised areas-'Forensic Investigations' and 'Fraud reporting.' The book addresses two key corporate governance requirements top on the agenda of regulators, enforcement agencies, boards and audit committees:

1. Rules, roles and responsibilities of key stakeholders towards:
   • Reporting of frauds under governance regulations in India
   • Prevention, detection and investigation of frauds
2. Practical approach for conducting forensic investigations in India

Practical tips, case studies and expert insights:

In addition to covering a gist of the topic with relevant provisions, and authors' viewpoint, key chapters also include relevant seasoned expert's take on the topic based on their vast practical experience. Each expert has more than three decades of experience including the last two decades in leadership roles. The idea was to present a practitioner's perspective based on practical experience in their role as an independent director or CEO or CFO, etc. More than 100 case studies are presented in the book to explain different concepts and learnings from various frauds discovered and investigated in India over the last two decades.

Few of the Questions addressed in the book:

• Is there a requirement to report all frauds to the regulators?
• Who is responsible for reporting?
• What is the role of audit committee, CEO, CFO, CHRO, internal/external auditors in prevention, detection, investigation and reporting of frauds?
• Can an organization ignore anonymous complaints?
• Can one access data from personal devices of employees during an investigation?
• How can one use forensic interviews as an effective tool to establish fraud?
• Is WhatsApp chat accepted as an evidence?
• Once fraud is established what are the next steps an organisation is expected to initiate?
• What is the difference between an audit and an investigation?
• How the approach to forensic investigations has evolved over the last two decades in India?
• Can we blindly rely on technology to prevent and detect frauds?
• Evolving methods for prediction, prevention and detection of frauds?

Chapter 1 Overview of white-collar crimes in India
Chapter 2 Definition of “Fraud” under relevant governance regulations
Chapter 3 Integrity and ethics
Governing framework and roles & responsibilities of various stakeholders towards prevention, detection, investigation
Chapter 4 Reporting of frauds under different governance regulations in India.
Chapter 5 Roles and responsibilities of CEOs & CFOs in prevention detection and investigation of frauds
Chapter 6 Roles and responsibilities of directors in prevention, detection and investigation of frauds
Chapter 7 Role of internal auditor in prevention, detection and investigation of frauds
Financial statement fraud and roles & responsibilities of statutory auditor
Chapter 8 Fraud detection and reporting – role of statutory auditor
Chapter 9 Financial statement frauds
Chapter 10 Identification of fraud–Role of whistle blowers and Audit considerations
Forensic investigations and fraud reporting in India
FRM & forensic investigations - evolution, types, methodology & approach
Chapter 11 Evolution of forensic accounting & investigations in India
Chapter 12 Types of forensic investigations in India
Chapter 13 Forensic accounting and investigation methodology
Chapter 14 Audit vs. Forensic investigation
Chapter 15 Fraud Risk Management
Frauds at financial institutions, including banks
Chapter 16 Frauds at financial institutions, including banks
Case studies, forensic standards, cyber fraud risk and illustrative examples of reporting
Chapter 17 Case studies–Promoter, management, employee and third-party frauds
Chapter 18 ICAI Standards-Forensic Accounting and Investigation Standards
Chapter 19 Cyber fraud risk and Auditors’ role
Chapter 20 Illustrative reporting by auditor and examples of reporting
Concluding remarks