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VOL. 2, ISSUE 1 (2026)
The role of Artificial Intelligence in Forensic Accounting: Evidence from Financial Statement Fraud Detection Practices
Authors
Dr. B. Menaka, Kavali Rudransh
Abstract
The growing complexity of financial reporting has increased the risk of
manipulation, creating a stronger need for advanced and reliable
fraud-detection mechanisms. Artificial Intelligence (AI) is emerging as a
transformative tool in forensic accounting by enabling auditors and
investigators to analyse large volumes of financial data, identify hidden
patterns, and detect anomalies that traditional techniques may overlook.
However, existing studies often focus either on AI applications or forensic
accounting independently, leaving limited evidence on how both interact in
real-world fraud detection practices. This study examines the role of AI-driven
analytical techniques in strengthening forensic accounting processes and
improving the detection of financial statement fraud. Drawing evidence from
professional practice settings and reported fraud-investigation cases, the
study analyses how machine-learning tools, text-analytics models, and
predictive algorithms enhance investigative accuracy, timeliness, and reporting
reliability. The findings indicate that AI complements human forensic judgment
by supporting risk assessment, pattern recognition, and decision-making, while
also highlighting challenges related to skills, ethics, and implementation
costs. The study contributes to both theory and practice by demonstrating how
AI-enabled forensic accounting can reinforce corporate governance and promote
greater transparency in financial reporting.
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Pages:1-6
How to cite this article:
Dr. B. Menaka, Kavali Rudransh "The role of Artificial Intelligence in Forensic Accounting: Evidence from Financial Statement Fraud Detection Practices". World Journal of Academic Research
, Vol 2, Issue 1, 2026, Pages 1-6
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