Perception and Awareness of Academicians on Forensic Accounting in Virudhunagar Districts

Approximately all segments of human life are vulnerable to frauds. Financial sector is facing challenges of fraud threats which demands serious attention and deterrent measures to combat them. Forensic accounting is a tool used to mitigate frauds. Academic fraternities around the world are revising their accounting syllabi for introducing forensic accounting in the curriculum. Present study has identified the perception and awareness of academicians on forensic accounting in VirudhuNagar District. The paper has empirically examined the factors contributing towards frauds and barriers in implementation of forensic accounting in India. The study also analyzed the ways to increase the level of awareness of forensic accounting. Statistical tests like factor analysis, with principle component analysis and varimax rotation are employed in the analysis. The findings of the study showed that awareness and understanding on financial frauds and forensic accounting, curiosity and willingness to know about financial frauds etc. are key factors measuring the awareness on forensic accounting. Further it is found that presence of corruption and indiscipline in execution of law in audit and control departments; lack of awareness, experience and insufficient training of auditing professionals in litigation etc.; delayed law enforcement by judiciary; difficult to co integrate with traditional accounting due to weak infrastructure etc. are barriers in the application of forensic accounting. Lastly the study found that by increasing comprehensiveness of techniques of financial fraud detection & prevention; making easy the availability & accessibility of financial fraud literature and setting up of online teaching & learning methodology, can boost the level of awareness on forensic accounting in India.