Forensic auditors are now seeking protection against litigation cases, as promoters and managements of companies facing allegations of fraud are increasingly bringing legal action against them for the findings in the reports.
Against this backdrop, Suhail Nathani, Managing Partner at Economic Laws Practice (ELP) has been quoted by The Economic Times in their article titled ‘Forensic auditors seek indemnity from banks, NBFCs against litigation.’ He says, “This trend of suing forensic auditors can have a chilling effect and unless the courts come down strongly on this trend, auditors will seek indemnity against such litigations. They are expressing their professional view. This should not expose them to litigation.”
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