Forensic accounting is screening false accounts through inspection and analysis of original materials and account data. It can preserve false evidence and false state facts in a form that is easily accepted by judicial authorities to improve the level of account management, reduce the risk of fraud—the purpose of solidifying the facts of the crime and punishing the crime.
Forensic accounting is the comprehensive application of accounting and legal knowledge and auditing methods and investigative techniques by specific entities. It aims to obtain relevant financial evidence through investigation and display or present it into court in a form acceptable to the court to solve related legal issues.
Global Forensic Accounting Market estimated to grow with a significant rate during the forecast period, 2020-2027. The surge in white-collar crimes such as financial frauds by which people have lost a lot of money is vital factors expected to drive the global forensic accounting market in the future timeframe. Additionally, forensic accounting provides the scientific basis for determining the facts of the crime, such as corruption, false reporting of registered capital, smuggling, fraudulent issuance of shares or bonds, false capital contribution, withdrawal of capital will fuel the global forensic accounting market size in the future time. Forensic accountants, also known as investigative auditors or forensic auditors, provide expert evidence at the eventual trial.
Moreover, the surge in demand for forensic accounting for financial reforms and volatility following frauds and scandals across the globe will contribute to the growth of the forensic accounting industry in the projected period. Additionally, the augmentation in demand for forensic accounting to provide effective protection for protecting the rights and interests of enterprises and institutions would likely trigger the global forensic accounting industry in the forecast period.
Forensic accounting to prevent corporate fraud and other unethical behavior. Some large international accounting firms have set up forensic accounting departments internally, increasing the number of forensic accountants. Forensic accounting provides a scientific basis for determining the facts of crimes of fraudulent export tax rebates, etc. It helps in investigating and analyzing the accounting matters involved in the case, make scientific appraisal conclusions, and provide scientific evidence for judicial proceedings, trials to determine the defendant’s criminal facts, convictions, and sentencing.
Forensic accounting services are now frequently using in banks and large corporations for providing governance and smooth conduct of operations. Banking industry using forensic accounting tools to detect fraudulent accounts such as fraudulent issuance of shares or bonds, false capital contribution, withdrawal of capital, the crime of providing false accounting reports, the crime of illegally operating similar businesses, negligence, abuse of power and causing bankruptcy.
Based on type, the global forensic accounting market classified into Criminal and fraud investigation, Bankruptcy proceedings, Risk management, Business/Employee Fraud Investigations, Shareholder/Partnership Disputes, Insurance Claims, and Others (Personal Earnings Losses, Mediation and Arbitration, etc. The Criminal and fraud investigation segment predicted to gain a major share in the market by 2027, on account of forensic accounting used to reduce white-collar crimes and corporate fraud cases.
The risk management segment will boom by forensic accounting provide a road map of key areas requiring focused monitoring and investigative procedures and deploy limited resources to mitigate fraud risk in the most susceptible areas.
Based on Organization Size, the global Forensic Accounting market bifurcated into Large Enterprises and Small & Medium-Sized Enterprises. Large Enterprises projected to dominate the market due to the increasing demand for forensic accounting to monitor prevent corporate fraud and other unethical behavior.
The Small & Medium-Sized Enterprises will influence by its application to detect crimes of tax evasion and fraudulent export tax rebate occurrence.
Based on Verticals, the global Forensic Accounting market classified Automotive, Banking Financial Services, and Insurance (BFSI), Healthcare, Travel and Hospitality, Media and Entertainment, Government, and Others. The Banking Financial Services and Insurance (BFSI) segment estimated to register a higher CAGR by 2027, due to the surge in applications of forensic accounting for protecting the rights and interests of enterprises and institutions and detect the fraudulent issuance of shares or bonds, withdrawal of capital, risk management, abuse of power and causing bankruptcy, etc.
Based on geography, the global Forensic Accounting market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s market share by 2027, owing to the growing adoption of forensic accounting tools by government agencies and accounting firms coupled with the presence of major service proving companies in these regions.
Europe will propel by the surge in cases of corporate fraud in these regions.
Companies such as Baker Tilly Virchow Krause, LLP, BDO USA LLP, Advanta Global Services, Alvarez & Marsal Holdings, LLC., Accuracy, FTI Consulting, Inc., Hemming Morse, LLP, Galvanize, CaseWare IDEA, Arbutus Software Inc., Fulcrum Management, Nuix, Cygna Labs Corp, e-fense, Passware, OpenText, Cellebrite, Sama Audit Systems & Software Pvt Ltd, and AccessData are the key players in the Global Forensic Accounting Market.
By organization Size
The forensic Accounting Market analyzes, interprets, and summarizes complex financial and business cases by applying accounting, auditing, and investigative skills for government agencies or private firms.
The forecasted market size of the Global Forensic Accounting Market is 9.2 billion in 2027.
The recorded compound annual growth rate of the market is 8.8% during the forecast period.
By Verticals, the market is segmented as Automotive, Government, Banking Financial Services and Insurance (BFSI), Travel and Hospitality, Media and Entertainment, Healthcare, and Others.
North America will lead the market by 2027 due to the increased use of forensic accounting tools by government-based agencies and accounting firms, in addition to the presence of major service-proving companies in the region.