Practical aspects of Transaction Audit/Forensic Audit under IBC

Introduction:

• To give an overview of the IBC and its relevance.
• Brief introduction to IBC and its significance.
• Importance of transaction audits under IBC.

Session 1: Understanding IBC & Its Implications

• To delve deep into the Insolvency and Bankruptcy Code and its implications.
• Historical context and the need for IBC.
• Overview of the insolvency resolution process.
• Roles and responsibilities of the Resolution Professional.

Session 2: Scope & Necessity of Transaction Audit under IBC

• To elucidate why transaction audits are crucial.
• Defining a transaction audit and its importance.
• Circumstances leading to a transaction audit.
• The impact of fraudulent transactions on the insolvency process.

Session 3: Types of Transactions & Red Flags

• To educate on the various kinds of transactions and how to identify suspicious activities.
• Preferential Transactions: Definition, Indicators, and Red Flags.
• Undervalued Transactions: Definition, Indicators, and Red Flags.
• Extortionate Credit Transactions: Definition, Indicators, and Red Flags.
• Fraudulent Transactions: Definition, Indicators, and Red Flags.

Session 4: Audit Procedures & Techniques

• To equip participants with the tools and techniques of conducting the audit.
• Document Review: Importance and Methodologies.
• Interviews: Designing and Conducting.
• Analytical Procedures: Tools and Techniques.
• Third-party Confirmations: Process and Significance.

Session 5: Legal Implications & Reporting

• To emphasize the legal consequences and the importance of accurate reporting.
• Legal ramifications of identified fraudulent transactions.
• The responsibility of auditors under IBC.
• Reporting findings: Best practices and templates.
• Interactive Case Study
• To provide hands-on experience with a mock audit scenario.
• Presentation of a mock scenario of a company under IBC.
• Breakout groups to identify red flags and draft audit procedures.
• Reconvene to discuss findings and approaches.

Conclusion & Q&A:

• To wrap up the session and address any queries.
• Recap of the seminar’s key takeaways.
• Open floor for questions and answers.
• Sharing of further resources and reading material.