FORENSIC ACCOUNTING IN THE DIGITAL AGE: A U.S. PERSPECTIVE: SCRUTINIZING METHODS AND CHALLENGES IN DIGITAL FINANCIAL FRAUD PREVENTION

Authors

  • Rosita Eberechukwu Daraojimba First Bank PLC, Calabar, Nigeria
  • Oluwatoyin Ajoke Farayola Financial Technology and Analytics Department, Naveen Jindal School of Management, Dallas, Texas, USA
  • Funmilola Olatundun Olatoye Independent Researcher Houston, Texas, USA
  • Noluthando Mhlongo City Power, Johannesburg, South Africa
  • Timothy Tolulope Oke Yannis Marketing, Lagos, Nigeria

DOI:

https://doi.org/10.51594/farj.v5i11.614

Abstract

This research provides a comprehensive review of forensic accounting in the digital age, focusing on its evolution, current practices, and future prospects in combating digital financial fraud. The study employs a systematic literature review methodology, analyzing peer-reviewed articles and case studies from 2015 to 2022. Key findings revealed the transformation of financial fraud in the digital era, marked by increasing complexity and the adoption of advanced technologies. The role of forensic accounting has evolved in response, integrating new tools and techniques for effective fraud detection and prevention. The research identifies various types of digital financial fraud prevalent in the U.S., highlighting the impact of technological advancements on their proliferation. It evaluates the effectiveness and limitations of current forensic accounting practices, emphasizing the need for continuous skill and tool enhancement. The future of forensic accounting is seen as promising yet challenging, with the integration of AI and predictive analytics expected to significantly improve fraud detection capabilities. However, this also presents challenges, including the need for forensic accountants to acquire new skills and adapt to rapidly changing technological landscapes. Recommendations for practitioners and policymakers include the necessity for continuous learning and adaptation, embracing new technologies, and developing robust regulatory frameworks that support advanced practices while ensuring ethical standards. The research concludes with suggestions for future research, particularly in exploring the long-term effectiveness of new technologies in forensic accounting and the impact of evolving regulatory landscapes on the profession. The study underscores the dynamic interplay between technological advancements and financial fraud as an ongoing area for scholarly inquiry and professional development.

Keywords:  Forensic Accounting, Fraud Detection, Financial Fraud, Technological Advancement.

Published

2023-11-28

Issue

Section

Articles