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- 1. 1 Sharone Singh Namani Manoj Kumar Dr. Ritu Kothiwal
- 2. 2 INTRODUCTION The integration of accounting, auditing and investigative skills yields the specialty known as Forensic Accounting. Forensic accounting provides an accounting analysis that is suitable to the court which will form the basis for discussion, debate and ultimately dispute resolution. Thus forensic accounting was called for to detect planning of the fraud, execution of the fraud, consequences of the fraud and book the culprits without much time lag.
- 3. 3 LITERATURE REVIEW Mehta & Mathur (2007) in their article it has been mentioned that there is an increase in fraud due to various competition among the organization as well as between the individuals. Hansen, McDonald, Messier, & Bell (1996) it is observed in the articles that it try to detect the various frauds taking place in the organization on the basis of its probability level. Schnatterly (2003) highlights the corporate crimes done at top level and suggest the different approaches to make corporate governance more active and effective in the organization.
- 4. 4 RESEARCH METHODOLOGY This is to study the growth and need of development of forensic accounting practices and measures taken by Indian firms to prevent frauds using forensic accounting practices. This research uses exploratory research design and secondary published data sources are used to collect data.
- 5. Name 5 Reasons for the growth of Forensic Accounting Rotation of the statutory auditor addresses a part of the problem. The certificates of the auditors are hardly scrutinized. The internal auditors can surely detect what was happening but they are hardly in a position to initiate proper action in proper time.
- 6. 6 THE ROLE OF FORENSIC ACCOUNTANTS Identifying the key documents which should be made available as evidence. Preparing a detailed balanced report on quantum of evidence written in a simple language understood by a non-accountant.
- 7. Date Name 7 MAJOR SCAMS IN INDIA S.no Scams and Frauds Year Losses Suffered(Rs) 1 Harshad Mehta Securities Market Scam 1991 5000 Crore 2 Fodder Scam(Chara Ghotala) 1992 950 Crore 3 C.R Bhansali Scam 1995 1200 Crore 4 Ketan Parekh Securities Market Scam 2001 1250 Crore 5 The UTI Scam 2001 4800 Crore 6 Uttar Pradesh Food Grain Scam 2003 35000 Crore 7 Satyam Scam 2008 10000 Crore 8 The 2G Spectrum Distribution scam 2008 1,75,000 Crore 9 Madhu Cora Scam 2009 4,000 Crore 10 CommonWealth Games Scam 2010 2,342 Crore
- 8. 8 Frauds by High profile lead Head Of Government Designation Period Estimates of Funds allegedly embezzled Mobutu Sese Seko President of Zaire (Congo Dr) 1965-97 US $ 5 Billion Mohammed Suharto President of Indonesia 1967-98 US $ 15-35 Billion Jean-Claude Duvalier President of Haiti 1971-86 US $ 300-800 Million Ferdinand Marcos President of Philippines 1792-86 US $ 5-10 Billion Siobodan Milosevic President of Serbia 1989-2000 US $ 1 Billion. Sanni Abacha President of Nigeria US $ 2-5 Billion. Alberto Fujimnori President of Peru 1990-2000 US $ 600 Million Pavio Lazarenko Prime Minister of Ukraine 1996-97 US $ 114-200 Million Armoldo Aleman President of Nicaragua 1997-2002 US $ 100 Million Joseph Estrada President of Philippines 1998-2001 US $ 78-80 Million Source: - Transparency International (2004)
- 9. Date Name 9 Techniques used in Fraud Detection and Prevention 1 Reconciliation Statement 12 Data Base Management 2 Surveillance Equipment 13 Compulsory Audit 3 Value Based Training Projects 14 Bedford's Second Order and Summation Test 4 Fraud Hotlines 15 Inventory controls 5 Corporate Governance 16 Bedford's Number Duplication and Last Two Digits Test 6 Staff Rotation Policy 17 Audit Trails 7 operational Audit 18 Relative Size factor Test 8 Computer Assisted Audit Tools 19 Internal Audit 9 Accounting Ratios 20 Largest Subsets and Largest Growth Test 10 Digital Analysis Software 21 Red Flags 11 Investigative Sampling 22 Bedford's First Digit Test
- 10. 10 Accounting/economic frauds and scams are not new topics. They took place in all eras and all countries with varying level of intensity and occurrence. It will indirectly decline the rate of fraud and prevent the financial losses to Indian economy. Accounting practitioners are still depended upon traditional techniques like reconciliation statements, investigative sampling and accounting ratios.
- 11. CONCLUSION Forensic Accounting courses should be introduced at UG/PG level. Today's business environment requires the services of forensic accountants to unearth fraudulent activities within and outside an organization. Government should have an effective plan with other countries in extraditing run away fraudsters from anywhere around the globe.
- 12. 12 SUGGESTIONS Law should be up to date with latest advancement in technology to ensure admissibility of evidence in a law court for successful prosecution of criminal and civic cases. Ideal Fraud Detection & Prevention Mechanism should be introduced by the organisation. On the basis of common consensus forensic audit can be used as a Fraud Management tool and Forensic accounting can be used as a proactive strategy to provide better assurance service to the clients.
- 13. 13 REFERENCES •Basu, C. S. (2014, September), Forensic accounting in the cyber world: a new challenge for accountants, the management accountant. •Business-standard.com.(n.d.) , Retrieved July 2016, from Saha, C. A. (2014, September), A Multidimensional Approach to Investigating. •Frauds and Scams; a study in the global and Indian context, the management accountant, pp, 29-38. The impact of Forensic Accounting on Revenue Generation in The Public Sector- Abu Olusola Silvanus Okodo, Allu & Yahaya (2019), Assessing Internal Audit Reliability.pdf. •Dr Haluk F Gursei, Fraud Profile- Fraudsters’ work and results.
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