Indian Banks’ Association (IBA), a representative body of banks and other financial institutions, is seeking applications from eligible entities for the empanelment of forensic auditors.

The empanelment of forensic auditors is in respect of the borrowing accounts with outstanding amount of up to 50 crore rupees ($6 million) and above 50 crore rupees, IBA said on its website.

The empanelment of forensic auditors will be for two years, starting from 28 August.

IBA said the scope of forensic audit will include:

• Examining stocks/inventory and purchase transactions, particularly with related parties/sister concerns.

• Identifying the type of fraud (if any) that has been operating, how long it has been operating for, and how the fraud has been concealed.

• Identifying the modus operandi/methodology of the fraud and fraudster(s) involved, if any.

• Ascertaining money trail and end use of funds disbursed by lenders and instances of diversion of funds.

• Tracing the source, genuineness and end use of contribution made by promoters by analyzing equity/debt/infused by promoters/partners.

• Commenting on transactions of substantial amount, which seem not to be normal trade transactions at arm's length.

• Gathering evidence of the modus operandi, to be used in court proceedings.

IBA said the last date to submit application is 4 June.

Note: $1 = 82.8418 Indian rupees

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