With rise in financial frauds, forensic audits prove handy for India Inc

Audit firms are also reporting a rising demand for background checks of senior executives when they join a company

Bring in the forensics — a line that’s often heard in crime thrillers — is fast turning out to be an audit industry essential. As instances of fraud rise, companies are reaching out to audit firms to seek extra comfort through extended procedures. As an executive put it, wary of becoming “tomorrow’s news’’, companies are asking auditors to flag off high-risk areas. And, forensic is coming in handy. 

Anti-fraud frameworks

In the last two years, EY India has taken up seven to eight “large engagements” to set up a forensic framework within the companies. “Earlier, we had no more than