E&Y do forensic audit in Citi fraud

Two private sector firms are simultaneously conducting a ‘forensic audit’ into the R400-crore Citibank fraud unearthed last December. Sanjeev K Ahuja reports.

Two private sector firms are simultaneously conducting a ‘forensic audit’ into the Rs 400-crore Citibank fraud unearthed last December.

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While Citibank hired global market research firm Ernst & Young to track the flow of money, the Gurgaon police roped in the services of a chartered accountancy firm, which submitted its partial report on Monday evening.

The matter was also taken up in the Rajya Sabha on Tuesday.

“A forensic audit has been initiated by Ernst & Young at the initiative of Citibank. The bank has conducted an internal investigation through Citi Security and Investigation Services,” minister of state for finance Namo Narain Meena said in a written reply.

He added that Reserve Bank of India also conducted a special scrutiny of related accounts at the Citibank Gurgaon branch.

Forensic audit is an exercise to study each and every entry, deposit and withdrawal of money in any bank scam to ascertain the flow of cash.

Meanwhile, police commissioner SS Deswal said a CA firm had submitted its partial report on the forensic audit in the Citibank case on Monday.