Role and Importance of Forensic Accounting in India

Abstract

The expansion of the Indian economy into global markets through various modes such as joint ventures, amalgamations, and consolidations has introduced significant complexities. The early 21st century witnessed a surge in white-collar crimes and financial scandals, which severely challenged the integrity of existing financial structures. This environment has underscored the critical need for forensic accounting in the prevention and detection of fraud. This paper aims to analyze the landscape of financial scams and white-collar crimes in India, specifically exploring the instrumental role of forensic accounting in mitigating these incidents. It further investigates how forensic accountants can assist the government in enforcing regulatory compliance. The research primarily focuses on the corporate framework, relevant legal provisions, and the practical application of forensic accounting in investigating corporate fraud in India. Being exploratory and theoretical, this paper also endeavors to elucidate the scope and methodologies of forensic accounting in response to the escalating corporate fraud in the country.