FORENSIC ACCOUNTING: AN EFFECTIVE TOOL FOR FRAUD DETECTION IN MODERN BUSINESS

Abstract

The increasing complexity of business operations and the rise in corporate fraud have highlighted the limitations of traditional auditing systems in detecting financial irregularities. Forensic accounting has emerged as an effective tool that combines accounting knowledge, investigative skills, and analytical techniques to identify and prevent fraud in modern business organizations. This study examines the role of forensic accounting in fraud detection and analyzes the effectiveness of various forensic accounting techniques such as financial analysis, data analytics, and digital forensic tools. Based on content analysis, the study finds that forensic accounting enhances financial transparency, strengthens internal control systems, and supports legal and regulatory actions against fraud. The study concludes that the adoption of forensic accounting practices is essential for improving corporate governance and minimizing fraud risks in contemporary business environments.