The infamous scams of Harshad Mehta, Ketan Parekh, Sanjay Seth and the recent Indiabulls scam and Kingfisher Airlines’ credit card fraud are still fresh in our minds. Whether it is stock market fraud or bank fraud or cyber fraud, forensic accounting has become an indispensable tool for investigation. With India being ranked as the 88th most corrupt nation, the need for forensic aacountants become all the more profound.
Forensic Accounting is investigation accounting which involves analysing, testing, inquiring and examining the civil and criminal matters and finally giving an unbiased and true report. Just as forensic investigations and lab reports are needed in the court to solve the murder and dacoit mysteries, similarly forensic accounting plays a key role in tracing the financial frauds and white-collar crimes. However, forensic accounting covers a wide range of operations of which fraud examination is a small part where it is most prevalent.
