2025, Vol. 6, Special Issue 3

Financial frauds have grown more complex in today's business environment, endangering stakeholder confidence and organizational integrity. One of the most important tools for identifying, stopping, and looking into these corporate wrongdoings is forensic accounting. With an emphasis on its efficacy, adoption rate, and implementation challenges, this study investigates the effect of forensic accounting on fraud detection in Indian corporations. The study emphasizes how forensic methods—such as data mining, forensic audits, and litigation support—improve internal and external auditors' capacity to find financial irregularities by utilizing empirical data and case analyses from a variety of industries. The study also looks at how corporate governance procedures, regulatory agencies, and technology developments have shaped the use and reach of forensic accounting. According to research, forensic accounting acts as a proactive tool for managing the risk of fraud and greatly improves internal control systems.

Its full potential in India is still hampered by issues like low awareness, a shortage of qualified professionals, and lax regulatory enforcement.