The Role of Forensic Accounting in Fraud Detection and Prevention

Abstract

This paper examines the role of forensic accounting in the detection and prevention of fraud within contemporary organisational environments. Drawing on secondary data from peer-reviewed studies published since 2015, the study analyses how forensic accounting extends beyond traditional auditing by integrating investigative techniques, legal awareness and advanced data analytics. The review highlights that forensic accounting significantly enhances the identification of complex and concealed fraud schemes, particularly those involving management override, collusion and digital transactions. The findings further indicate that forensic accounting contributes to fraud prevention by supporting stronger internal controls, improving governance practices and creating deterrence effects through increased detection likelihood. The study also discusses the influence of technological innovation, professional competence and institutional support on the effectiveness of forensic accounting practices. While acknowledging challenges such as cost constraints and skill gaps, the paper underscores the growing strategic importance of forensic accounting as an integral component of modern fraud risk management frameworks.