ICAI's Initiative Against Financial Fraud

The Institute of Chartered Accountants of India (ICAI) is taking a proactive step by collaborating with regulators to establish an early-warning mechanism aimed at preventing scams and frauds, with a special focus on listed companies. This initiative was announced by Charanjot Singh Nanda, president of ICAI, during a press conference on Wednesday.

Collaboration with Key Stakeholders

Key stakeholders including Sebi, NSE, BSE, the Intelligence Bureau (IB), and RBI are set to participate in this groundbreaking initiative. The move comes in the wake of several auditor lapses and financial fraud cases in India, such as those involving IndusInd Bank and Gensol.

New Guidelines Issued by ICAI

In a related development, ICAI has also issued new guidelines limiting the number of tax audits a partner at an accounting firm can undertake in a year to 60, marking a significant step towards ensuring accountability and transparency in financial audits.