The Importance of Forensic Accounting & Finan...

The Importance of Forensic Accounting & Financial Fraud Examiner in Detecting Banking Frauds

Author Name : Annie Mampilly

ABSTRACT Fraud is a very commonly heard term and a frequently committed white collar crime. With the element of deceit in its core, it reaps undue benefit or an unjust enrichment, mostly financial. It can be a civil wrong or a criminal offense and are classified into various categories or types based on its nature as well as the sector in which a fraud is committed. The banking sector is no exception to frauds. Banking frauds are the frauds committed against banks. This paper attempts to analyze the role and importance of forensic accounting and financial fraud examiner as an effective and efficient mechanism to tackle the menace of banking frauds. Forensic accounting which is also known as investigative accounting is a specialty practice area wherein accounting, auditing and investigative skills are used to analyze information suitable for use in a Court of Law. The paper elucidates the concept and importance of Forensic accounting in the light of the rising financial frauds. This is followed by answering who is a forensic accountant, his skills and role in examining financial frauds. Thereafter, the researcher also analyses the case of the Worldcom fraud to unravel how forensic accounting was utilized to solve the case. The inferences and suggestions of the researcher winds up the paper.