Study on the Importance of Forensic Accounting in Detection and Prevention of Financial Frauds in India

Abstract

Financial fraud and scams have always occurred in the economy. These frauds and scams harmed all companies, regardless of size, nature, or kind. Regulatory authorities including as SEBI & the RBI attempted to curb it, but were unsuccessful. Criminals and fraudsters have become more technologically sophisticated, inventing new techniques to commit fraud. On the other hand, Generally Accepted Accounting Principles (GAAP) ensure that companies' financial statements reflect an accurate and fair representation of their financial condition and profitability. The primary goal of study is to investigate role of forensic accounting in the identification & prevention of financial crime in India. This study concludes that forensic accounting plays a crucial role in discovery & prevention of financial crimes due to its large beneficial impact.