This document provides an overview of forensic accounting. It defines forensic accounting as applying investigative and analytical skills to resolve financial issues in a legal context. Examples of areas it can be applied include economic damages calculations, post-acquisition disputes, bankruptcy, securities fraud, tax fraud, and computer forensics. The document discusses the evolution of forensic accounting in India, with Kautilya mentioning fraud in his book. It outlines objectives and techniques of forensic auditing, and challenges like lack of specific guidelines in India. It also mentions government agencies that combat fraud.

1. FORENISC
ACCOUNTING
L.KARTHIK B.COM

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.

5. India’s First Fraud Examiners
BIRBAL

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

9. CASE STUDY.

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

13. THANK YOU