Forensic Auditing for Fraud Investigation and Prevention - A Critical Review

Abstract

The landscape for forensic auditing is changing at very fast pace in the backdrop of increased frauds and white-collar crimes. It is drawing attention from all quarters academia, industry, and researchers, accounting bodies, financial reporting authorities, law-makers, law-enforcement agencies, regulators, revenue authorities, Government agencies and others. With a history dating back to earlier decades of eighteenth century, when even the term ‘forensic auditing’ was nonexistent, it has travelled a long distance and has emerged as a full- fledged system and discipline in itself. With the ever increasing electronic element of frauds in the present age of digitalization and as the nature of companies as well as the nature of financial transactions and financial instruments they handle are becoming more complex, both the scope as well as the challenges are growing multifold for the forensic auditing profession. A multifaceted approach is required to address the concerns timely and to build a competent taskforce of forensic auditing professionals to change the face of corporate world.