International Journal of Scientific Research and Engineering Development

Corporate fraud remains a major threat to the stability and credibility of the Indian corporate sector. Traditional statutory audits, while essential for financial reporting assurance, have repeatedly failed to prevent or detect complex fraud schemes, thereby widening the audit expectation gap. This study evaluates the role of forensic audits in strengthening fraud detection and prevention, using the Satyam Computer Services scandal as a retrospective case analysis. The research analyses how forensic methodologies including data analytics, investigative procedures, document verification, and litigation support could have uncovered Satyam’s manipulated revenues, fictitious assets, and overstated cash balances significantly earlier. The findings indicate that forensic audit procedures provide deeper investigative insight, enhance transparency, and improve corporate governance mechanisms. The study contributes practical implications for regulators, audit professionals, and corporate boards in India to adopt forensic auditing as a proactive governance tool rather than a reactive measure.