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Tag: Chartered Accountant

What is Financial Statement Fraud?

What is Financial Statement Fraud?

In layman terms Financial Statement Fraud pertains to simply cooking the books. Technically Financial statement fraud is the deliberate misrepresentation of the financial condition of an enterprise achieved through the intentional misstatement or omission of amounts or disclosures in the Financial Statements. According to the ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse, Financial Statement Fraud comprises of less than 10% of the Frauds reported in the study. In India also, the Corporate Loan frauds has been…

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How does RBI regulate Loan Frauds?

How does RBI regulate Loan Frauds?

In the current Indian Economy there are many Frauds Happening in the Banking Sector. The major fraud in the banking sector is Loan Fraud. Loan fraud  is when a borrower intentionally deceives a lender by providing false information, or by omitting important information during the loan application process or during the currency of such loan. Such fraud in India is regulated as per the directions of RBI. The situation has become so much worse that RBI has even given a…

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What is the scope of Forensic Accounting in India?

What is the scope of Forensic Accounting in India?

Forensic Accounting and Auditing is a very much upcoming field in India. With the impending use of Systems we are becoming completely dependent on that. With more and more use of systems frauds are happening at an alarming rate. Moreover, if you would look up RBI is thinking to set up a bad bank for bad loans since there has been increasing numbers of bad loans which warrant a forensic audit. Scope of Forensic Accounting in India: RBI Red Flagged…

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When is Forensic Audit Necessary?

When is Forensic Audit Necessary?

Forensic in laymen terms means relating to court of law or something which can be held as an evidence in a court of law. Accordingly, forensic audit is necessary when any fraud is alleged and such allegation is to be proved/disproved in court of law. Mainly, Frauds are divided into following categories which require a Forensic Audit: Financial Statement Fraud Asset Misappropriation Cash Receipts fraudulent Disbursements Inventory and Other Assets Bribery and Corruption Theft of data and intellectual property Financial…

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