The significance of forensic audit has gained paramount importance in the context of the Indian regulatory and governance framework. Investigative Agencies and Public | Private banks have become hyper active in tracing and bringing fraudsters violating national interest to prosecution. Forensic/investigative techniques such as financial data analytics, documentary evidencing, computer and mobile analysis, market intelligence, social media filtering can help provide quantitative and qualitative information to proactively build a body of evidence sustainable in the courts and identify the pervasive modus operandi.
By tracing the end use of funds, identifying undisclosed conflicts of interest, inflating financial statements through round tripping, creating preferential interest of the perpetrator through fraudulent transactions etc., forensic accountants are best placed to help government agencies, banks, insolvency professionals and other stakeholders to build greater confidence in the fairness of the entire investigative process.