Forensic Accounting: An Evolving Accounting Profession in India

Abstract

A series of financial scams have taken place world-wide mainly in the corporate world which challenges this corporate form of the entity. The ever increasing pressure on the management and employees for achieving outstanding performance may insist to involve into these fraudulent activities. The financial auditors are insufficient particularly to unearth the hidden fact behind any financial fraud in the corporate world. To address this unresolved problem a new concept of forensic accounting has been emerged. Forensic accountant is a multi-skill expert who applies accounting, auditing and investigative techniques to not only detect the frauds but also prevent from any further occurrence of such fraud. The present study highlights current status of forensic accounting practices in India along with its problem and prospects. Finally reached at the conclusion that although forensic accounting profession has come into the limelight globally but it is still at infancy stage in India. It is the high time to take step forward for introducing forensic accounting in core area of learning and research particularly for addressing the embedded financial fraud of the corporate world with a serious magnitude.