Impact of Forensic Accounting on Audit Expectation Gap in India

Abstract

Forensic accounting, a multi-faceted approach in accounting, has been introduced as part of fraud investigations. Forensic accounting gained more importance after the collapse of companies like WorldCom and Enron. In India, it gained importance after the accounting scandal i.e. Satyam scam. Across the world, there have been many financial frauds and scams in all eras, and affected millions of corporations. This increased the demand for forensic accounting, leading to emergence of anew profession called forensic accountant. The present research study titled “Impact of forensic accounting on audit expectation gap in India” intends to highlight the importance of forensic accounting for the organization and its stakeholders and investigate how forensic accounting can help detect and prevent fraud in India. The study concluded that there is no significant gap on how forensic accounting can help to address audit deficiencies and bridge the AEG by providing reliable accounting information that discloses more accurate and relevant essential information.