A Comparative Study on the Effectiveness of Forensic Accounting and Auditing in Fraud Prevention and Detection.

Abstract

Fraudulent activities, especially occupational fraud, continue to pose a significant challenge to organizations across industries, resulting in financial losses, reputational damage, and weakened stakeholder confidence. While auditing has traditionally been the backbone of financial oversight by ensuring compliance and accuracy of financial records, it is often limited in detecting intentional and well-concealed fraud schemes. In contrast, forensic accounting has emerged as a specialized discipline that applies investigative and analytical techniques to detect, prevent, and respond to fraudulent practices. This study aims to undertake a comparative analysis of the effectiveness of forensic accounting and auditing in fraud prevention and detection. Through a combination of empirical evidence, case studies, and survey responses from professionals such as auditors, forensic accountants, and internal control officers, the study evaluates the extent to which forensic accounting offers additional value beyond auditing.  Furthermore, the study seeks to provide insights into how organizations can effectively integrate forensic accounting practices alongside auditing procedures to build a more robust anti-fraud framework.