Forensic Accounting and Fraud Examination in India

Forensic accounting in India has come to limelight only recently due to rapid increase in white collar crimes. It helps companies in accomplishing their organization’s objectives, with a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. It is the contribution of accounting, auditing and investigative skills. A large global accounting firm believes the market is sufficiently large to support an independent unit devoted to ‘Forensic Accounting’. The objective of the paper is to study: the role of forensic accounting in fraud examination in India and to understand the various applications of forensic accounting in Indian firms. In India unfortunately it is being used as an investigative tool, rather than a preventive tool. If forensic auditing is made mandatory in various sectors, many of the scams can be restricted. It has been suggested that appointment of forensic accountants should be made mandatory in public sectors and large scale companies for the sustainable development of the economy.