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Research Paper | Accounting | India | Volume 9 Issue 12, December 2020

Forensic Accounting - An Investigative Analysis on Selected Indian Companies Using Benfords Law

Ashish M. Chauhan ^[2]

Abstract: Forensic accounting is the investigation of fraud or financial manipulation by performing extremely detailed research and analysis of financial information. Forensic accounting information is the output of the investigative arm of accounting aimed at producing information that helps to resolve complaint, statement of claim, rumour, and inquiry or to reduce the financial element of legal debate. This is a precious tool for finding out the fraud committed. All the necessary details are summarized in the financial statement, and the analysis of these statements can help a forensic accountant to figure out the scam. As mentioned, the presence of fraudulent activity is just one of the possible explanations. For an auditor, rejecting the hypothesis means that additional work needs to be completed in order to determine whether fraud is present or not. It serves as red flag to auditors. It is concluded that Benford’s analysis, when used correctly, is a useful tool for identifying suspect financial statement for further analysis.

Keywords: Forensic accounting, Investigative, Financial Statements, Fraudulent activity

Edition: Volume 9 Issue 12, December 2020,

Pages: 1469 - 1477

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