Sebi adds Sarath & Associates in CA firms list to conduct forensic audit of listed cos

Markets regulator Sebi has selected Hyderabad-based chartered accountant Sarath & Associates for conducting forensic audits of financial statements of listed firms to check frauds, taking the total number of such entities to 10.

The watchdog has already enrolled nine entities -- KPMG, Grant Thornton, Ernst & Young Associates LLP, Deloitte Touche Tohmatsu India LLP, Chokshi & Chokshi LLP, G D Apte & Co CA, JLN US & Co, Pipara & Co LLP and T R Chadha & Co LLP -- in October.

Pursuant to completion of the empanelment process, Sarath & Associates has been enrolled to take up the assignments relating to forensic audit, the Securities and Exchange Board of India (Sebi) said in notice dated December 31.

In July this year, the markets watchdog had invited applications from eligible CA firms "for empanelment to take up assignments relating to forensic audit of financial statements of listed companies".

The move comes amid Sebi ordering forensic audit of a slew of companies. Of late, concerns have been raised over certain auditors for being negligent while examining books of the listed firms with various inconsistencies in financial statements being ignored.

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