Forensic Accounting is a rapidly growing area of accounting concerned with the detection and prevention of financial fraud and white-collar criminal activities. Today’s business world is much more complex-we not only have databases and software, but multi-national companies worth billions of dollars.
Now days we can say ‘There are two type of companies in which fraud happening another who don’t know that fraud is happening’. What was the use of fingerprint in 19th century DNA analysis for the 20th century, forensic accounting and forensic auditing will be for 21st century said Shri Rajtilak Raushan, Deputy Commissioner of Police, Nagpur at inauguration of Forensic Accounting & Fraud Detection Course of the Institute of Chartered Accountants of India at Nagpur recently. He further said that the Chartered Accountants have the responsibility of bringing out the real picture behind the transactions through forensic audits.
He assured that in future the role of forensic auditor will be tremendous. He added that the need for forensic accountants arises in educating, preventing, detecting and prosecuting the fraudsters. Their role is of utmost important in combating financial abuse. While commenting the task of finding trail behind a transaction in the computerized environment, he said that a person with sound knowledge of technology and law can easily determine the entire process through which the transaction occurred due to the system logs created at each level. He invited participants to offer their service to the police department as ‘partners in nation building’ so they the department can get expert advice on various day to day matters.
Shri Vazeer Shiekh, Senior PI, shared his experience with the participants with respect to various financial frauds the police department has investigated. He further discussed various provisions of the Indian Penal Code, Maharashtra Protection of Interests of Depositors Act and also Code of Criminal Procedure. He briefed the members as to their role in financial frauds and the compliances a professional has to do while investigating a fraud.
Earlier Chairman of Nagpur Branch CA. Umang V Agrawal in his welcome address mentioned that today villains are using mouse and keyboard instead of using mask and gun when we are gone in digital world. Globalization has been a boon to businesses around the world but it has also created endless opportunities for bad guys willing to exploit weaknesses in internal controls.
He stressed that the systems are the first in line defense against financial frauds but the knowledge and expertise of Chartered Accountants should be availed by businesses not only in post fraud scenario but while designing and implementing systems for better prevention of frauds. He advised that the professionals need to be proactive and should not hesitate in raising red flags and ask tough questions on clients system as an independent forensic auditor.
CA. Jiten saglani co-ordinated the program while CA Kirit Kalyani, Secretary proposed formal vote of thanks.
Prominently present of the occasion were speaker CA. Suren Duragkar, CA. Saket Bagdia, CA. Sandeep Jotwani, CA. Charudutt Marathe and participants in large numbers.
