Forensic Audit and Corporate Governance: A Step Beyond Traditional Auditing System and Synergistic Role of Artificial Intelligence

Detecting and preventing white-collar crimes is the most critical challenge faced by the traditional auditing system, which lacks investigative expertise. Corporate fraud and willful misstatement of financial information downgrade the true spirit of corporate governance objectives. In contrast, forensic auditing is a step ahead of traditional auditing systems because of its robust and proactive investigative proficiency in unraveling complex financial irregularities and contributing to achieving corporate governance objectives. Artificial Intelligence has revolutionized the world as a substitute for human intelligence; integration of AI with forensic auditing has created a synergy to combat corporate crimes much more efficiently and effectively than traditional auditing systems. This study has tried to magnify that forensic audit is a step ahead of the traditional audit and AI Integrated forensic auditing is a powerful tool to reduce corporate crimes and help to achieve corporate governance goals.