Financial frauds have become a usual phenomenon, and many a time, accountants are finding smart and unique ways to indulge in illegal and irregular activities characterized by intentional deception. This practice has caused another major extension in the responsibilities of the auditors in terms of detecting and predicting the financial frauds, popularly known as Forensic Accounting. This article makes an attempt to highlight this emerging concept of Forensic Accounting, which the authors feel, is Forensic Auditing and share the various issues involved in it.

Students are taught that auditing is nothing but the general application of mind and Forensic Accounting/Auditing is not an exception to it. Basically, it is the function of identifying, recording, settling, extracting, sorting, reporting and verifying past financial data for evidence to be suitable in order to fix the accountability for various activities of the enterprise. Normally, it is considered as a function of an accountant, not the auditor. But it is a wrong perception based on traditional thinking. If we look carefully at the issues involved in it, we will find that the role of the auditor is much more required and essential for this newly identified area in the accounting world.

Forensic Accounting is basically an integration of accounting, auditing and investigative skills in a systematic manner. The term `Forensic Accounting' was coined by Maurice E Peloubet, who explained that "Financial statements have some but not all the characteristics of Forensic Accounting". The dictionary gives the meaning of `forensic' as `of or used in courts of law'.

Forensic Auditing, Forensic Accounting, Cyber crimes, Credit card frauds, Cyber extortion, Cyber stalking, Auditing Principles, Audit reporting, Computer forensics, Business investigations, Forensic Investigations, Financial statements, Investment analysis research.