International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 08 | Aug 2024
p-ISSN: 2395-0072
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Forensic Accounting Techniques in the Digital Age: A Comprehensive Review Christeena Raphy1, Aparna Mohan2 1 M.Tech Student, Dept. of Computer Science, Malabar College of Engineering and Technology, Kerala, India
2 Assistant Professor, Dept. of Computer Science, Malabar College of Engineering and Technology, Kerala, India
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Abstract - The field of forensic accounting has witnessed
by identifying patterns and anomalies that may elude traditional methods [2].
significant transformations in the digital age, driven by advancements in technology. This comprehensive review synthesizes findings from various studies, shedding light on key techniques and their implications. Our analysis draws from a range of sources, including research on artificial intelligence (AI) for audit and valuation, integration of big data frameworks for fraud mitigation, and the impact of AI in detecting financial fraud. Additionally, we explore the effects of big data on forensic accounting practices and education. Practical applications, reporting quality assessments, and sector-specific insights further enrich our understanding. As the landscape continues to evolve, this review underscores the importance of continuous research and professional development for forensic accountants to meet the demands of the digital era.
The role of AI in enhancing forensic accounting practices is further emphasized by Mehta et al. [3], who examine its mediating impact on the detection of financial fraud. They argue that AI not only improves the accuracy of fraud detection but also significantly reduces the time required for forensic investigations. Additionally, the influence of big data on forensic accounting education and practices, as explored by Kılıç, underscores the necessity for continuous professional development in this rapidly evolving field [4]. This review will also delve into the practical applications of forensic accounting techniques as demonstrated in various case studies, including those by Simeunović et al. [5] and Odeyemi et al. [6], who provide insights into fraud auditing and the effectiveness of digital forensic tools. Furthermore, the impact of data analytics on reporting quality in forensic audits, particularly within the Malaysian context as discussed by Suppiah and Arumugam [7], will be explored, along with the challenges and opportunities presented by these advancements.
Key Words: Forensic accounting, Digital age, Fraud detection, Data analytics, Artificial intelligence
1.INTRODUCTION In an era defined by rapid technological advancement, the field of forensic accounting has evolved significantly, leveraging cutting-edge digital tools to enhance the detection, investigation, and prevention of financial fraud. The increasing complexity of financial crimes, coupled with the proliferation of digital data, necessitates the integration of sophisticated techniques such as artificial intelligence (AI), big data analytics, and machine learning into forensic accounting practices. This paper, titled “Forensic Accounting Techniques in the Digital Age: A Comprehensive Review,” aims to explore the various methodologies that have emerged in recent years, offering a detailed analysis of their effectiveness in combating financial fraud.
The comprehensive overview of the contemporary forensic accounting landscape, focusing on the integration of digital technologies and their implications for fraud detection and prevention. By synthesizing the contributions of various scholars, including Uniamikogbo et al. [8] and Nigrini [9], this review will contribute to the ongoing discourse on the future of forensic accounting in the digital age.
2. LITERATURE REVIEW The landscape of forensic accounting has undergone significant transformation in recent years, driven by advancements in digital technology and the increasing complexity of financial fraud. This literature review seeks to explore the various techniques that have emerged within forensic accounting, focusing on the integration of artificial intelligence (AI), big data analytics, and machine learning to enhance fraud detection, investigation, and prevention.
The foundation of forensic accounting has traditionally been built on the meticulous examination of financial records to uncover fraudulent activities. However, as Naqvi highlights, the advent of AI has introduced a transformative element to this field, enabling auditors and forensic accountants to analyze vast datasets with unprecedented accuracy and speed [1]. Similarly, Akinbowale, Mashigo, and Zerihun discuss the integration of big data technology within forensic accounting frameworks, particularly in the banking sector, to mitigate internal fraud
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