The Role of Forensic Accounting in Detecting Financial Fraud in Complex Corporate Structures

Abstract

Forensic accounting plays a crucial role in uncovering financial fraud within complex corporate structures, where traditional auditing methods may fall short. This research aims to explore the techniques and methods used by forensic accountants to identify fraudulent activities, particularly in organizations with intricate financial transactions and multi-tiered subsidiaries. By employing qualitative research methods, including case studies and expert interviews, the study evaluates the effectiveness of forensic accounting in detecting financial fraud and its contribution to corporate governance. Findings highlight the importance of specialized skills, such as financial analysis, investigative techniques, and knowledge of legal procedures, in uncovering fraud. The study also discusses the implications of forensic accounting for enhancing transparency and accountability in corporations, offering recommendations for strengthening corporate internal controls and governance practices. The results suggest that forensic accountants must work closely with other stakeholders, such as legal professionals and regulators, to ensure that fraudulent activities are effectively detected and addressed.