This comprehensive literature review delves into the multifaceted domain of forensic accounting and auditing, systematically categorizing the existing body of knowledge into five pivotal areas. The review examines prevalent fraudulent activities within financial statements, highlighting their impact on organizational integrity and stakeholders trust. Subsequently, it critically assesses the limitations of conventional audit methodologies in identifying and preventing fraud, emphasizing the need for enhanced scepticism and investigative procedures. Then, the paper traces the development of forensic accounting and auditing as specialized fields, focusing on their role in fraud detection, legal proceedings, and regulatory compliance. The next section explores proactive strategies and tools employed in the early identification and prevention of fraudulent activities, underscoring the importance of continuous monitoring and internal controls. Lastly, the review highlights contemporary research and technological innovations, such as artificial intelligence, blockchain, and data analytics, that are transforming forensic practices and enhancing fraud detection capabilities. By synthesizing insights across these domains, this paper provides a holistic understanding of the current landscape in forensic accounting and auditing, offering valuable perspectives for academics, practitioners, and policymakers aiming to combat financial fraud effectively.
Meenu Gupta (Tue,) studied this question.