2. QUOTE:
“ Earth Provides enough to
satisfy every man’s needs,
but not every man’s greed”
-Mahatma Gandhi
3. DEFINITION
Forensic Means “the application of investigative
and analytical skills for the purpose of resolving
financial issues in a manner that meets standards
required by courts of law.”
4. EXAMPLES:-
Economic damages calculations, whether suffered
through tort or breach of contract;
Post-acquisition disputes such as earnouts or
breaches of warranties;
Bankruptcy, insolvency, and reorganization;
Securities fraud;
Tax fraud;
Money laundering;
Business valuation; and
Computer forensics/e-discovery.
6. EVOLUTION OF FORENSIC ACCOUNTING IN INDIA
In India, Kautilya was the first person to
mention the famous 40 ways of
misappropriation in his famous book
Kautilya Arthashastra.
In India Chartered Accountants are called upon
to take upsuch investigative assignments.
7. Objectives Of Forensic Auditing
To avoid fraud and theft
To restore the downgraded public
confidence
To formulate and establish a comprehensive
corporate governance policy
To create a positive work environment
Facilitate settlement ,claim etc
8. Techniques And Tools Of Forensic Audit
• Benchmarking
• Ratio Analysis
• System Analysis
• Specialist Software
• Exception Reporting
10. Problems Of Forensic Accounting In India
No specific guideline or Act in India
Not mandatory for appointment by
Companies
Expensive
Financial Cases against on
Politicians.
New techniques of Info. Tech
by Fraudsters
11. Literacy For Forensic Accounting In India
There is huge requirement for honesty,
fairness and transparency in Indian
Corporate reporting.
The ICAI started a course on forensic
accounting for only its members.
“Certificate Course on Forensic
accounting and Fraud Detection
using IT and CAATs”
12. Govt.Agencies That Combat Frauds
SFIO : Serious Fraud Investigation Office
CBI : Central Beauro of Investigation
CVC : Central Vigilance Commission
Forensic accountants apply special skills in accounting, auditing, finance, quantitative methods, certain areas of the law, research and investigative skills to collect, analyze and evaluate evidential matter and to interpret and communicate findings
