Why only one among Big Four are on Sebi’s panel of forensic auditors
April 30, 2025
Sebi has significantly reduced its panel of forensic auditors for listed companies from 20 in 2022 to 9 in 2025, prioritizing firms with frequent past engagements and a strong track record of timely audit completion; major firms like EY, KPMG, and Grant Thornton have been excluded, with Deloitte being the only Big Four firm retained.
The frequency of past engagements of auditors and their track record of the last three years have played a crucial role in Securities and Exchange Board of India’s (Sebi’s) decision to cut down the number of forensic auditors for listed companies on its panel, people aware of the matter told FE. A need was also felt to have a “short and manageable” list, the sources added.
From 20 auditors in 2022 to 9 in 2025, the Sebi’s latest panel has excluded big names like Ernst & Young, KPMG Assurance And Consulting Services and Grant Thornton Bharat. Among the Big Four firms, only Deloitte Touche Tohmatsu India has secured a position on the latest panel for conducting forensic audits of listed companies.
Also read: Sebi picks 9 audit firms to probe corporate fraud
“The current list contains those firms who were frequently engaged by Sebi in the past three years. The regulator has also looked into the firms’ track record with extra points being given to the firms who were able to complete the audit work within the time specified. Additionally, there was an emphasis to reduce the number of panellists to a manageable number,” said a source, on the condition of anonymity.
Some experts, however, apprehend that the pruning of the list might also be a reflection of the capabilities of top auditors who have been excluded from the panel. “The Big Four firms would have met some of the market regulator’s eligibility conditions, but there may have been some shortcomings,” the source said.
The fees offered by the regulator for assignments is at par with the present market rates. “Being on the list adds a lot of credibility to the names of these firms,” said an auditing expert.
FE couldn’t independently verify if firms like KPMG, PwC India, Grant Thornton Bharat and Ernst & Young had shown interest to be a part of the panel.
In an advertisement floated in November 2024, Sebi had asked for the applicants to have a minimum 10 years of experience in the field of forensic audit. Besides, the applicant was required to have a minimum of 10 partners or directors out of which at least 5 partners to be actively involved in forensic audit-related work. Further, the applicant was supposed to have had experience of undertaking at least 15 forensic audits in past three years out of which a minimum of three forensic audits work to be assigned by a regulatory body or government agency or a PSU.
As per the terms, the panel is valid for the next three years, and the regulator will be paying a fees of Rs 10-30 lakh per assignment, depending on the number of years for which forensic audit is conducted, and the size of the company for which forensic audit is conducted.
[The Financial Express]
