Forensic audits are increasingly vital for tackling fraud and insolvency in India, yet they critically lack legally binding standards, unlike financial audits. Consultancy firms providing these services often operate without registration or regulatory oversight, leading to concerns about report quality, accountability, and professional qualifications. This significant regulatory gap poses a public policy concern, especially with escalating corporate fraud. The authors strongly advocate for urgent action to establish a harmonized, legally enforceable framework under the Companies Act, RBI, and ICAI. This would ensure clear guidelines for appointing forensic auditors, regulating their work, and ensuring robust accountability and oversight.