Forensic Accounting: An instrumental to Prevent Frauds

Abstract

Authenticated financial statements presenting true and fair view plays a significant role in the financial decision making of every stakeholder of the company. Though with 45 industrial sectors booked the economic growth rate of 8.2% in the year 2024, expecting India as one the top three economic power, financial scamps in the history cannot be overlooked. Corruption, conspiracy, embezzlement, money-laundering, bribery and extortion have increased. Forensic accounting can be a tool to resist such frauds in the corporate industry so that interest of all related parties can been secured. This paper presents the brief discussion of various laws, statutes national and international to curtailing fraudulent practices. Also discusses the types of frauds and elaborates it with the examples of frauds in the Indian history. Author has suggested Forensic audit as an emerging exploratory tool to be practiced by the corporate.