The Role of Forensic Accounting in Preventing Financial Fraud: A Cross-Country Comparative Study

Abstract

Forensic accounting has become an important tool in detecting and preventing financial fraud in various countries. This study aims to analyze the role of forensic accounting in preventing financial fraud through a qualitative approach based on literature studies (library research). The study examines the relevant literature from various journals, books, and research reports to understand how forensic accounting is applied in different countries, including its differences in legal, regulatory, and accounting practices. The results show that forensic accounting has a significant contribution in identifying and reducing the risk of financial fraud. In developed countries, such as the United States and the United Kingdom, forensic accounting has been effectively integrated with supporting regulatory and legal systems. In contrast, in developing countries, the implementation of forensic accounting often faces obstacles, such as a lack of trained human resources and supporting infrastructure. The study also found that the role of technology, such as data analytics and artificial intelligence, is a key factor in improving the efficiency of forensic accounting in detecting complex fraud patterns. The conclusions of this study emphasize the importance of developing forensic accounting capacity in developing countries, including professional workforce training and harmonization of international standards. This study makes a theoretical and practical contribution in strengthening the financial fraud prevention framework through forensic accounting. These findings are relevant for policymakers, auditors, and academics to design more effective fraud prevention strategies.