Growing Needs of Forensic Audit in Corporate and Banking Frauds in India

10 Pages Posted: 23 Jul 2020

See all articles by Dr.Dinesh Kumar Gupta

Dr.Dinesh Kumar Gupta

Guru Jambheshwar University of Science and Technology - Department of Business Management

Date Written: July 22, 2020

Abstract

With the gradual rise in money laundering and wilful default cases, RBI has made forensic audit mandatory for large advances and restructuring of accounts. In the present administrative system post Modi regime, no domain is spared from immoral misconduct, fraudulence and injustice. According to a joint study conducted by ASSOCHAM and Grant Thornton, corruption, money laundering, tax evasion, window dressing, financial reporting fraud and bribery are the most common corporate frauds occurring in India Inc. The study revealed that nearly half of corporate frauds have taken place in real estate and infrastructure in the last two years followed by financial services sectors recording 34% frauds.

Scandals in accounting have grown in the last two decades and have put a question mark in corporate governance, role of company secretaries and auditors. The scandals occurred in this 21st century are also putting question on monitoring role of regulators also in some cases. Restoring stake holders’ confidence back in the financial reporting process and corporate governance is also a challenge in view of these developments. Further, the lengthy legal processes also help the criminal companies and borrowers to play with public money as long as they like. Consortium loan process should not be so conducive to give rise to get huge money without security and an easy game to play with public money. Forensic accounting helps the government, regulators and all stakeholders of the companies to have a confidence in dealing with such corporate.

Keywords: Corporate Governance, Auditing, Financial Statement, accounting, accounting frauds, forensic

Suggested Citation

Gupta, Dr.Dinesh Kumar, Growing Needs of Forensic Audit in Corporate and Banking Frauds in India (July 22, 2020). Available at SSRN: https://ssrn.com/abstract=3624001 or http://dx.doi.org/10.2139/ssrn.3624001

Dr.Dinesh Kumar Gupta (Contact Author)

Guru Jambheshwar University of Science and Technology - Department of Business Management ( email )

hisar, haryana 125001
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
341
Abstract Views
1,086
rank
123,260
PlumX Metrics