FORENSIC ACCOUNTING AND AI INTEGRATION: A STRATEGIC APPROACH TO DETECTING CORPORATE FINANCIAL FRAUDS

Abstract

The increasing complexity of financial transactions and digitalization of corporate has significantly increased the volume of fraudulent transactions and unethical practices in the corporate world. The evolution of  digitalization has also increased the risk and intricacy of financial fraud. The traditional forensic accounting practices are effective, but are inadequate to present the complexity of modern corporate fraud. Here, this paper explores the strategic integration of forensic accounting and artificial intelligence to enhance the early fraud detection, investigative efficiency and regulatory compliance. Using a conceptual analytical framework backed by global and Indian case illustrations, it examines the effectiveness of Artificial Intelligence and AI driven forensic models, analyse the controllable and ethical challenges and it forwards a technology enabled forensic governance architecture. This study suggests that AI integrated forensic accounting seriously improves the fraud detection accuracy, it minimizes the investigation time, and strengthens corporate governance, positioning it as a critical pillar of modern financial oversight.