The Role of Forensic Accounting in Preventing Corporate Fraud – Evaluating its Effectiveness in Strengthening Financial Transparency

The escalating complexity of financial crimes in the digital era has positioned forensic accounting as a critical defence mechanism against corporate fraud. This paper examines the effectiveness of forensic accounting in preventing corporate fraud and strengthening financial transparency through systematic analysis of current practices, techniques, and outcomes. The research reveals that forensic accounting, combining traditional investigative skills with advanced technologies such as artificial intelligence and big data analytics, provides significant value in fraud detection and prevention. Global fraud losses reached a record high of $485.6 billion in 2023, highlighting the urgent need for effective fraud prevention measures (International Association of Accounting Affiliates, 2024). The study finds that organizations implementing forensic accounting practices experience enhanced financial transparency, improved internal controls, and reduced fraud risks. The findings suggest that forensic accounting serves as both a reactive investigative tool and a proactive fraud prevention mechanism, contributing substantially to corporate governance and financial integrity.