Abstract

Forensic accounting has evolved into a crucial discipline in detecting and preventing financial crimes, particularly in the digital age, where cyber-enabled fraud has intensified. This study examines how forensic accounting techniques have adapted to address modern financial crimes, incorporating artificial intelligence (AI), blockchain technology, and big data analytics. The research aims to evaluate the effectiveness of these advanced tools in fraud detection and financial transparency. A combination of qualitative analysis and statistical evaluation was used in the mixed-methods approach. The results reveal that AI adoption significantly enhances fraud detection rates, with a Pearson correlation coefficient of 0.997 (p-value = 0.00015), confirming a strong positive relationship. Additionally, a linear regression analysis demonstrated an annual increase of 100 fraud cases from 2020 to 2024, highlighting the growing need for forensic interventions. The chi-square test (χ² = 25.95, p = 0.001) indicates a statistically significant shift in financial crime patterns over time, emphasizing the necessity for continuous advancements in forensic methodologies. The study concludes that forensic accounting, integrated with AI-driven analytics, predictive modeling, and blockchain auditing, significantly improves fraud detection efficiency, increasing from 60% in 2020 to 80% in 2024. To further enhance fraud prevention, organizations should invest in AI-powered forensic tools, strengthen regulatory compliance measures, and promote interdisciplinary collaboration between forensic accountants, cybersecurity experts, and regulatory bodies.

Keyword: Strategic cost accounting, activity-based costing, financial performance, AI-driven cost analytics, long-term decision-making

Full Text PDF

Refrences:

1. 1. Chen T, Chen X, Chen W, Heaton H, Liu J, Wang Z, et al. Learning to optimize: A primer and a benchmark. J Mach Learn Res. 2022;23(189):1–59.
2. Garrison A, Karlsson L, Fressard L, Fasce A, Rodrigues F, Schmid P, et al. international adaptation and validation of the Pro-VC-Be: measuring the psychosocial determinants of vaccine confidence in healthcare professionals in European countries. Expert Rev Vaccines. 2023 Dec 31;22(1):726– 37.
3. Rajan R, Chapla A, Johnson J, Varghese D, Asha HS, Jebasingh F, et al. A series of genetically confirmed congenital lipodystrophy and diabetes in adult southern Indian patients. Sci Rep. 2024 Nov 16;14(1):28277.
4. Mishra AK, Ananda N, Aithal PS. Industry 4.0 Concept for Nepal – Operating Virtual Farming Industry. In: Krishna Prasad K, Aithal PS, Jayanthiladevi A, editors. Proceedings on Future Trends in ICCT and its Applications in IT, Management and Education. August 2022. p. 31–5. ISBN: 978- 81-949961-8-7. doi:10.5281/zenodo.7215189.
5. Goldratt E. Streamlining Data-Intensive Biology with Workflow Systems. In: Signal in the Noise: Recovering Subtle Patterns in Biological Sequencing Data with New Approaches. 2020. p. 168.
6. Simatupang S, Silalahi M, Panjaitan PD, Putra HS. Effect leading by example and coordination on employee performance. Asian J Manag Entrep Soc Sci. 2024 Apr 23;4(02):486–500.
7. Kaplan A. A framework for approaching policy-oriented educational psychology research. Educ Psychol. 2023 Oct 2;58(4):229–43.
8. Hernández JL, Nan D, Fernandez-Ayala M, García-Unzueta M, Hernández-Hernández MA, López- Hoyos M, et al. Vitamin D status in hospitalized patients with SARS-CoV-2 infection. J Clin Endocrinol Metab. 2021 Mar 1;106(3):e1343–53.
9. Miller P, Power M. Accounting, organizing, and economizing: Connecting accounting research and organization theory. Acad Manag Ann. 2013 Jun 1;7(1):557–605.
10. Celestin M, Sujatha S, Kumar AD, Vasuki M. Forecasting public sector accountability: Analyzing and predicting audit trends in Rwanda’s financial management (2020–2030). Rabi Sangyan. 2024 Dec 31;1:23–32.
11. Mishra K, Aithal PS. Assessing the association of factors influencing green banking practices. Int J Appl Eng Manag Lett (IJAEML). 2023 Aug 14. ISSN: 2581-7000.
12. Mishra AK, Kandel DR. Examination of specific factors of the form affecting profitability of commercial banks: A case from Nepal. VEETHIKA Int Interdiscip Res J. 2023;9(4):13–24.
13. Mishra K, Aithal PS. An imperative on green financing in the perspective of Nepal. Int J Appl Eng Manag Lett (IJAEML). 2022 Oct 19;6(2):242–53.