Financial Forensics - An Overview

Abstract

The term Fraud does not need any formal introduction, the disaster it has been creating since the past decades has left an everlasting effect on the world. It has become a part of almost every company in recent times. No matter what is the size, geographical location or the industry of the company, the impact is always highly negative. The origin of the word “Forensic” was from mid 17thcentury from Latin word “Forensis” which means “in open court, forum”. In an archaeological survey it is revealed that, during 3300-3500 B.C, the scribes (now accountants in real world) of the ancient Egypt were involved in fraud detection. But this niche area in finance is getting popular in the present world, because the growing complexities of the business, legal procedures, inefficiencies in the system attracts or tends the companies in committing a fraud. In simple words, financial fraud is knowingly using illegal ways to make money or other benefits.