To Study the Conceptual Framework- Projections and Procedures of Forensic Accounting in India | Original Article

ABSTRACT:

The primary aim of GAAP is to ensure that financial statements represent a real and honest image of the financial situation. The ambiguity of the term real and fair provided a loophole that allowed financial fraud to thrive, eroding users' confidence in the published financial statements. The idea of forensic accounting has gained prominence in India due to an unbridled rise in financial reporting anomalies, corporate frauds, and ‘white-collar' crimes. The art and science of detecting and preventing financial frauds is forensic accounting, which combines investigation and accounting. The current study is exploratory and theoretical in nature, with the aim of highlighting the scope and methodology of forensic accounting in the context of rising corporate fraud in India. The thesis relies heavily on secondary sources of knowledge and previous forensic accounting literature, as well as expert opinions. In case, the study indicates that forensic accounting could grow into a distinct ‘niche,' with opportunities for forensic specialists to provide litigation assistance, investigative accounting, and consulting services. The government and recognised accounting bodies in India must urgently regularise the forensic accounting movement. In the face of the unending number and scope of corporate frauds and economic crimes, there is plenty of space for advances in forensic accounting methods and legislation.