“Evaluating the Efficacy of Forensic Accounting over Traditional Auditing and its application in selected Industries in Bengaluru”

Abstract

The frequency of financial fraud and white-collar crimes has increased recently worldwide, endangering economies, investors, and companies greatly.

Purpose This study investigates the growing relevance of forensic accounting over traditional accounting practices in Bengaluru’s rapidly expanding economic sectors, focusing on its comparative effectiveness in fraud detection and regulatory compliance amid rising financial crime, cyber threats, and remote work environments.

Design/methodology/approach A descriptive and quantitative research study is employed. Primary data collected from 61 respondents across diverse industries. A structured questionnaire incorporating Likert-scale items was distributed. The data was analysed using a one-sample t-test to evaluate perceptions regarding the distinctiveness and efficacy of accounting practices.

Findings The findings demonstrate strong stakeholder support for forensic accounting over traditional auditing. Respondents affirmed that forensic accountants possess superior analytical and investigative skills, and that forensic engagements are more effective, adaptive, and legally robust in addressing financial fraud. The IT and manufacturing sectors were the most represented, underscoring the growing demand for specialized financial oversight in technology-driven industries.