Forensic Accounting, Fraud Detection And Organisational Awareness In India: Evidence From Chartered Accountants And Corporate Executives

Abstract

This paper examines the relationship between forensic accounting, fraud detection and organisational awareness in the Indian setting. The paper is developed from a doctoral study on forensic accounting’s role in the detection and prevention of financial frauds in India. The purpose was to assess whether respondents with direct financial decision-making or accounting responsibility perceived forensic accounting as a credible and necessary anti-fraud mechanism. The study used a descriptive and analytical design. Primary data were gathered through a structured questionnaire administered to 700 qualified chartered accountants and 50 corporate respondents, while secondary evidence was drawn from books, journal articles and professional studies. The analysis relied on tabulation, percentages, averages and thematic interpretation. The findings show that awareness of forensic accounting was high among chartered accountants and moderate among corporate executives, indicating that the concept has entered professional vocabulary but is still unevenly embedded in organisational practice. Respondents strongly agreed that forensic accounting improves the detection of concealed irregularities, collusive manipulation, banking fraud, procurement abuse and frauds supported by digital records. They also distinguished forensic accounting from routine audit by emphasising its investigative depth, evidentiary focus and ability to identify the substance behind apparently compliant records. The paper concludes that forensic accounting has moved beyond a niche service and should now be treated as a central fraud-detection mechanism in India. Wider adoption, stronger executive awareness and earlier integration into risk review processes are necessary if organisations are to move from symbolic recognition to effective use.