Authors
Gulpas Asrar Ansari, Kaneeka Joshi
Abstract
As we look down to the present scenario, where there has been a drastic rise in financial treachery and money related frauds, a need has arisen of experienced forensic accountants. According to the study, it is found that financial scams that took place in the history of India and which is still ought to happen is mainly due to the lack of stern organizations which can have a control on every abnormal financial activity. This study has discussed about what role does a forensic accountant paly in detecting and preventing financial frauds or scams which are taking place in India. Various methods like as Benford’s law, Theory of Relative Size Factor (RSF), Data Mining Techniques and Ratio analysis are also discussed in this piece of study. The present study is done by the available literature on forensic accounting and its applications. Keywords: Forensic Accounting, Financial Frauds, Scams, White Collar Crimes.
Introduction
Because of the excessive fraud committed in corporate sectors, forensic accounting and financial investigation is being focused nowadays (Bansal, 1). In accounting, forensic accounting is an area which is developing rapidly as it aids in detection of any kind of financial treachery such as money laundering, white collar criminal activities etc. (Shaheen et al., 171). Therefore, Forensic Accounting is a branch of Forensic Science which helps in uncovering financial criminal ideologies. It is very difficult to take severe or stern measures on fraud as it needs investment. There is substantial increase in white collar crime over the last two years as noted by the KPMG Fraud Survey. In Indian business, corruption is very common through which the business associates had been made the rule of greasing their hands. India ranks 81st most corrupted country in the world as per the report of global anticorruption watchdog (Moid, 24).
The art of recording, classifying and summarizing the money, transaction and events and interpreting the result in a significant manner is called accounting. The term forensic accounting is described as the application of specialized, comprehensive knowledge and skills to locate unauthentic transactions. Thereby taking strict steps in order to prevent these type of criminal activities.
For the purpose of assisting in lawful affairs, forensic accounting comprises the use of auditing, accounting, along with the investigative skills (Moid, 24). Nowadays different types of frauds are going on among which employee fraud, identity theft and cyber fraud are the most commonly used frauds.
References
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How to cite this article?
| APA Style | Ansari, G. A., & Josh, K. (2019). Study the Role of Forensic Accounting in Detecting and Preventing Frauds or Scams in India through Different Techniques: A Review. Academic Journal of Accounting and Finance, 1(1), 8-13. |
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