Laws Related to Forensic Audit

Abstract

Financial fraud is a pervasive concern that impacts all. It can also entail the loss of an asset for the scam victim, but it also has the ability to disrupt the cultural and/or economic underpinnings of “respect†and “trust.†As a result, governments and other policymakers continue to be concerned about such threats. The law-making authorities pass legislation with the sincere goal of defending the general public interests and the country’s overall reputation in the international community. However, in recent years, numerous financial scams have been reported in countries all over the world, resulting in the loss of credibility, confidence, and capital. Forensic auditing is one of the techniques used to combat fraud and malpractice. While forensic auditing is a relatively new field, the rise in the number of frauds in recent years, as well as the establishments’ vulnerability to coping with them, has thrust the Forensic Audit into the mainstream. Unfortunately, in India, forensic audit is mostly used as an exploratory and investigative tool than a preventive tool. In this research paper an attempt has been made to evaluate various international and Indian standards, laws, and precedents that form the foundation for forensic auditing.