An increasing number of researchers are finding that ‘poor’ corporate governance (CG) is a leading factor in poor performance, manipulated financial reports, and unhappy stakeholders. Corporations and regulatory bodies are now trying to analyse and correct any existing defects in their reporting system. In the current reporting environment, forensic accountants are in great demand for their accounting, auditing, legal, and investigative skills.
Forensic accountants are positioned to explore the design of CG systems, the role of the financial reporting system in CG, the effect of the governance board on employee and managerial behaviour, and the efficacy of the internal control systems. As part of the governance committee, Forensic Accountants can make significant contributions in the area of CG, fraud prevention and investigation, creating positive work environment, establishing effective lines of communication and vigilant oversight. An attempt is also made here to portray global regulatory action scenario undertaken by leading bodies to prevent corporate frauds and improve CG through accounting reforms. In nutshell, the Forensic Accountant is “a blood-hound of book-keeping.”