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VOL. 6, ISSUE 1 (2024)
Literature review on forensic auditing
Authors
Hidaya Rashid Ali, Hafidh Ali Hafidh
Abstract
Forensic auditing has become an increasingly
vital field in combating financial irregularities, fraud, and other types of
financial misconduct. The growing incidence of financial crimes globally has
heightened the importance of forensic auditing, which involves examining and
evaluating financial information to gather evidence suitable for use in a court
of law. The demand for forensic audit services has surged due to the rising
fraudulent practices in businesses and government agencies. This report
highlights the integration of advanced technologies such as artificial
intelligence (AI) and data analytics in forensic auditing, which enable
auditors to analyze large volumes of financial data efficiently, identifying
anomalies indicative of fraud. The rise of cyber forensic accounting is also
emphasized, addressing the escalating threat of cybercrimes in the digital age.
The globalization of business operations further underscores the importance of
forensic auditing in ensuring compliance with international standards and
detecting financial misconduct in cross-border transactions. The methodology
employed involves a systematic review of 14 selected papers on forensic
auditing, providing a comprehensive analysis of the effectiveness of various
forensic auditing techniques. Findings reveal that data mining and forensic
analytics are highly effective in detecting and preventing fraud, although
their success is contingent upon the auditors' skills and the specific context
of application. Continuous training for auditors and adapting techniques to fit
organizational contexts are essential strategies for maximizing the benefits of
forensic auditing. This study concludes with recommendations for implementing
proactive forensic auditing techniques, investing in continuous training,
customizing techniques to organizational contexts, and integrating big data
analytics to enhance fraud detection capabilities.
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Pages:134-138
How to cite this article:
Hidaya Rashid Ali, Hafidh Ali Hafidh "Literature review on forensic auditing". International Journal of Management and Economics, Vol 6, Issue 1, 2024, Pages 134-138
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