GASPRO International Journal of Eminent Scholars

ABSTRACT

Uncovering the financial fraud is the major attention on forensic accounting. Financial frauds have been growing strongly across the worldwide stage including banking sector over the past decade. Consequently, the cumulative activities of financial frauds need the high engagement of forensic accounting to carry out the effective investigation as well as the performance of the individuals related with the criminal activities. The forensic accounting is anticipated to facilitate for reducing or preventing susceptibility of conventional accounting and audit systems contributing to financial frauds. In this research, the major focus is on determining the impact of forensic accounting practices in detecting and preventing the suspected frauds from the banking sector. The study observed that amongst other frauds, e.g. Bank impersonation, Cheque kiting, Forgery and altered cheques, Accounting fraud, Electronic Banking Fraud (E-fraud), and Advance Fee Fraud (419), computer fraud is more sophisticated than the manually processed fraudulent activities. However, the study concluded that some of these fraudulent activities would have been prevented had it been the banks had applied their standard account-opening controls. More specifically, the study recommended that entry-level fraud and forensic accounting professionals should possess knowledge, skills and abilities in identifying illegal activity and discovering and preserving evidence. Fraud auditors might improve on this detection percentage by going straight to the types of accounts where fraud is most likely to occur.

KEYWORDS: Forensic Accounting, Auditors’ Relevant Tool, Detection and Prevention of Corporate Fraud