The Role of Forensic Accounting in Fraud Detection and Prevention in Financial Institutions

Abstract

The objective of this article is to examine how forensic accounting may be used to identify and stop financial institution fraud and to explain how crucial its use is to preserving the accuracy of financial statements. A literature review and case study analysis are two of the research techniques employed, in which information on financial fraud and forensic accounting is gathered from a variety of scholarly and real-world sources. According to the study's findings, forensic accounting greatly enhances financial organizations' capacity to identify fraud, minimize losses, and comply with legal obligations. Furthermore, the application of cutting-edge technology like machine learning and artificial intelligence improves forensic accounting's ability to stop fraud. This article concludes that the proper implementation of forensic accounting is essential to maintaining the stability and credibility of financial institutions.