Accounting Frauds in India: Critical Analysis

Accounting fraud is a form of white-collar crime that has negative on the whole Economy. These frauds often involve the misappropriation or manipulation of public funds by perpetrators for personal economic gain. With technological development, the frequency and complexity of accounting frauds have increased. High-profile cases such as those involving Vijay Mallya, Ramalinga Raju, and Nirav Modi underscore the gravity of the issue. Additionally, accounting fraud committed in the digital monarchy is equally concerning. Cyber fraudsters exploit the invisibility of the internet to execute scams, including KYC frauds, identity theft, and UPI payment frauds. Technology has thus emerged as a key enabler for fraudulent activities. This study seeks to analyze critical aspects of accounting fraud in India, including its methods and implications. Common methods of perpetrating accounting fraud include, Operational and financial decisions influenced by accounting manipulation, choosing particular accounting policies to distort true financial condition of a company, Misrepresentation of accounting estimates within the framework of accounting standards, Formulation of transactions or reporting of fictitious ones, Misclassifying revenue expenditures as capital or deferred revenue.