The Role of Forensic Accounting in Detecting Financial Fraud in the banking sector
DOI:
https://doi.org/10.62872/pxhx7a76Keywords:
Forensic Accounting, Fraud Detection, Banking Sector, Internal ControlAbstract
This study explores the role of forensic accounting in detecting fraud within the banking sector, with a focus on its practices, challenges, and contributions to internal control systems. Using a qualitative case study approach, data were collected through in-depth interviews with key informants from major financial institutions, including Bank Negara Indonesia (BNI), Bank Central Asia (BCA), and oversight bodies such as the Financial Services Authority (OJK) and the Financial Transaction Reports and Analysis Center (PPATK). The findings reveal that forensic accounting plays a significant role in uncovering complex fraud schemes that are often undetected by conventional auditing processes. Techniques such as financial ratio analysis and forensic data analytics prove effective in identifying anomalies, while digital tools enhance the accuracy and efficiency of investigations. However, challenges such as limited data access, lack of organizational support, and weak inter-agency collaboration continue to hinder optimal outcomes. The study concludes that integrating forensic accounting into internal audit mechanisms and enhancing collaboration among stakeholders can significantly strengthen fraud prevention and detection systems in the banking industry.
Downloads
References
Anghel, G., & Poenaru, C. E. (2023). Forensic Accounting, a Tool for Detecting and Preventing the Economic Fraud. Valahian Journal of Economic Studies, 14(2), 87-100.
Capraș, I. L., & Achim, M. V. (2023). An overview of forensic accounting and its effectiveness in the detection and prevention of fraud. Economic and Financial Crime, Sustainability and Good Governance, 319-346.
Dalwadi, P. (2023). Uncovering financial fraud: the role of forensic accounting in preventing and detecting fraud in india. International Journal of Management, Public Policy and Research, 2(2), 1-5.
Đukić, T., Pavlović, M., & Grdinić, V. (2023). Uncovering Financial Fraud: The Vital Role of Forensic Accounting and Auditing in Modern Business Practice. Economic Themes, 61(3).
Egiyi, M. A. (2022). Forensic Accounting as a Tool for Fraud Detection and Prevention in Business Organisations. International Journal of Economics and Public Policy, 6, 12-18.
Ekundayo, A. B. (2020). Forensic accounting and fraud in private sector in Nigeria.
Hamdan, M. W. (2018). The role of forensic accounting in discovering financial fraud. International Journal of Accounting Research, 6(2), 1-6.
INDUSTRY-Salman, A. Y., Lawal, A. A., & Anjorin, S. Y. INFLUENCE OF FORENSIC ACCOUNTING ON FRAUD DETECTION AND PREVENTION IN NIGERIA BANKING. In 1st Academic Conference of Accounting and Finance (p. 294).
Jarallah, M. N., & Alsayed, H. E. (2022). Forensic accounting as a mechanism for controlling and detecting financial fraud. J. Econ. Admin. Legal Sci, 20, 92-112.
Jubouri, N., & Khalidi, S. (2013). The Role of Forensic Accounting in Detecting Financial Fraud. Journal of Economic and Administrative Sciences, 19(70), 457-473.
Kontogeorgis, G. (2025). Forensic Accounting And Its Importance In Financial Crime Investigations. Ratio, 10(3).
Malusare, L. B. (2013). The effectiveness of forensic accounting in detecting, investigating, and preventing frauds in India. Online International Interdisciplinary Research Journal, 3(3), 192-198.
Mamgain, P. (2019). Role of Forensic Accounting in Detecting Financial Frauds in Corporate world. REVIEW JOURNAL, 103.
Metwaly, A. Z., El Haron, E. O., Hassan, N. A., & Albaz, M. M. (2023). The role of forensic accounting in detecting misstatements in the financial reporting: A theoretical framework and descriptive modeling. World Research of Business Administration Journal, 3(1), 19-27.
Moid, S. (2016). Application of forensic accounting to investigate scams in India. MIJBRMITS International Journal of Business Research, 3(1), 24-31.
Nadaf, Y. (2023). Role of forensic accounting in preventing financial frauds. South India Journal of Social Sciences, 21(39), 153-159.
Narayanan, H. (2020). Forensic accounting and fraud examiner–an inquiry. Mukt Shabd ISSN NO: 2347, 3150.
Navarrete, A. C., & Gallego, A. C. (2022). Forensic accounting tools for fraud deterrence: a qualitative approach. Journal of Financial Crime, 30(3), 840-854.
Okoye, E., Amughoro, O. A., & Evbota, C. I. (2019). Fraudulent activities and forensic accounting services. Journal of Accounting, Business and Social Sciences, 1(2), 53-68.
Oyedokun, G. E. (2022). Determinants of forensic accounting techniques and theories: An empirical investigation. Annals of Spiru Haret University. Economic Series, 22(3), 317-337.
Polycarp, S. U. (2019). The role of forensic accounting in detecting economic crimes. Research Journal of Finance and Accounting, 10(16), 98-107.
Shah, B. (2021). Forensic Accounting: A New Investigative Approach in Accounting. International Journal of Science and Research, 10 (3), 14, 16.
Shah, M. K. (2018). Will implementation of forensic accounting identify the sense of financial fraud. Journal of Commerce & Accounting Research, 7(4), 47-50.
Sule, S., Ibrahim, S. S., & Sani, A. U. A. (2019). The effect of forensic accounting investigation in detecting financial fraud: A study in Nigeria. International Journal of Academic Research in Business and Social Sciences, 9(2), 545-553.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Muhammad Hasyim Ashari, M. Anas, Dwi Fitrianingsih (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
