Part – II: Are there any particular guidelines/regulation of institute/council for charging fees in case of Forensic Audit Services?
Does Forensic Audit comes within category of “Management consultancy services” as per Regulation 192 of council??
Example: Recently in Nirav Modi Case, PWC is appointed as Forensic Auditor being the L-1. What would be the basis of quoting fees in tender??
Deloitte was appointed as Forensic Auditor in case of NSE when trading was halted for 15 minutes on 2-3 occasions on a particular day in 2017??
There are no guidelines / regulations from ICAI or anyone in INDIA on how to charge fees for forensic audit, fees is very subjective matter, depends on lot of circumstances.
Appendix to guidance note on tax audit, provides minimum fees for some regular services by CAs, again it is recommendatory, not mandatory
Further Fees Cannot be on percentage basis
Forensic Audit services can be provided by Practicing CAs it is now written explicitly but it will be covered in Sec 2(2)(ii) of CA Act as given below
offers to perform or performs services involving the auditing or verification of financial transactions, books, accounts, or records or the preparation, verification or certification of financial accounting and related statements or holds himself out to the public as an accountant; or
Further as it is covered in Section itself, we don’t have to See Management Consultancy Services List