21 Synopsis

SYNOPSIS
ON
A STUDY ON FORENSIC ACCOUNTING AND RISK MANAGEMENT
IN SELECTED BANKS OF MUMBAI
SUBMITTED TO:
DEPRATMENT OF COMMERCE,
S.N.D.T. WOMEN’S UNIVERSITY,
CHURCHGATE, MUMBAI – 400020.
SUBMITTED BY:
Ms. SANGEETA KANOJIA
UNDER THE GUIDANCE OF

DR. JYOTI THAKUR
HEAD, DEPARTMENT OF COMMERCE,
S.N.D.T. WOMEN’S UNIVERSITY,
CHURCHGATE, MUMBAI – 400020.
August 2021
INDEX
SR. NO. PARTICULARS PAGE NO.
1. Introduction 1
2. Significance of the Study 2
3. Objectives of the Study 3
4. Review of Literature of the Study 4
5. Conceptual Framework of the Study 8
6. Research Methodology 14
7. Hypotheses of the Study 19
8. Findings of the Study 51
9. Conclusions of the Study 60
10. Limitations of the Study 65
11. Chapter Outline 65
12. Future Research 68
13. References 68
14. Annexures 72
A STUDY ON FORENSIC ACCOUNTING AND RISK MANAGEMENT
IN SELECTED BANKS OF MUMBAI
1. Introduction
Eye-opener Satyam Scam (2009), which was termed to be the biggest financial fraud
of the country, highlighted that white collar crimes has increased in India and there were
difficulties faced by the law enforcement agencies in uncovering the fraud. Indian
organizations felt the urge to have proper investigation of financial frauds and the need for
experts in this field aroused. Since then, a growth in the forensic accounting profession
was seen and the forensic accounting industry gained a lot of importance in India. Even
the KPMG Fraud Survey stated that white collar crimes in Indian corporates have
increased which made detecting and investigating fraud difficult. The technology is
increasing day by day and financial crimes are also increasing at a faster pace. So a
professional specialized person having the knowledge of accounting, auditing and
investigative skills which focuses on detecting or preventing fraud is required.
According to the Webster’s Dictionary ‘Forensic’ means Belonging to, used in or

suitable to courts of judicature or to public discussion and debate. On the other hand the
integration of accounting, auditing and investigative skills yields the specialty known as
Forensic Accounting. “Forensic accounting”, provides an accounting analysis that is
suitable to the court which will form the basis for discussion, debate and ultimately dispute
resolution.
Banking industry in India is growing very rapidly and the fraud is also increasing at
a much faster pace. The fraudsters are using innovative methods with the help of new
technologies. Banks cannot give 100% security to the people, the banking industry lacks
in training its employees and lack of internal control. Technological advancements have
brought the banks and the consumers close but on the other hand the technology has also
brought a fear due to online frauds. Fraud is on the rise and a rapid increase is seen in the
past few years. Risks associated with banks are financial which includes credit risk and
market risk; and non-financial risk which includes operational risk.
The banking frauds since 2009-2010 to 2018-2019 is shown in Chart 1.1.
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Chart 1.1
Banking Frauds
Banking Frauds
71542.93
80000
70000 2009-10
41167.04
60000 2010-11
Amount in Crores
50000 2011-12
23933.85
19455.07
18698.82
40000 2012-13
10170.81
30000 2013-14
8590.86
4501.15
3815.76
1998.94
20000 2014-15
10000 2015-16
0 2016-17
2017-18
2018-19
Year
Source: RBI Annual Reports (2009-10 to 2018-19)
The graph clearly shows the increasing trend in the banking frauds, due to which
the need for forensic accounting arises.
Due to the increasing frauds, growing competition, increased volatility and

fluctuations of markets, the risk management model has become essential and it has gained
importance too.
Due to the practice of risk management, it resulted within the increased efficiency
in governing Indian banks and has also increased the practice of corporate governance.
The essential feature of a risk management model is to reduce the risks of the products and
services, which are offered by the banks therefore, to mitigate the interior & external risks
there is a requirement of efficient risk management framework.
Thus, the study aims on determining the perception of stakeholders towards

forensic accounting and risk management and the implementation of forensic accounting
techniques used for management of risks and detecting and preventing risk.
2. Significance of the Study

Forensic accounting is a legal term which deals with application of accounting
techniques and concepts in issues related to legal matters. Forensic accounting is important
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for the corporates, shareholders, regulatory authorities etc. to deal with the increasing rate
of white collar crimes including financial frauds, embezzlement and other financial wrong
doings like money laundering, bankruptcy etc. it helps in investigating the fraud and helps
the corporates to clear the fraudsters.
The poor corporate governance, mismanagement, frauds and other wrong doings
has led to corporate failure and have placed a great responsibility on forensic accountant
and risk managers. Forensic accounting and risk management is required to minimize the
credit risk, market risk and operational risk in order to improve the image of the corporates.
The increase in technology has given a great boost to the corporate crimes, which has put
a pressure on the accountants to identify the evidence of financial abuses.
This study will help to provide some indications to the stakeholders on the
availability of skills required to practice forensic accounting in the risk management model
which will help to detect and prevent credit risk, market risk and operational risk. The
study will also help in determining an overview of forensic accounting industry and its
importance for risk management in banks in India and will give an insight to the
government, corporates, academicians and regulatory authorities about the machinery and
techniques used for the management of risks by banks.
3. Objectives of the Study

The present study puts forwards the study of banking industry and the use of
forensic accounting and risk management methods to detect and prevent risks in the bank.
The study also focuses on the prospects, challenges, and techniques of forensic accounting
in banking industry. Various risks related to banks has also been focused. The objectives
of the study are:
1. To study the concept of forensic accounting and risk management.

2. To understand the difference in financial auditing and forensic accounting for
management of risk.
3. To understand the need of forensic accounting in management of risk.
4. To study the prospects and challenges of forensic accounting industry in general.
5. To study the forensic accounting techniques used for the management of risks by the
banks.
6. To study the level of awareness about forensic accounting techniques used in
management of risks in banks.
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7. To study the types of risks associated with banks and the methods used by banks to
prevent credit risk, market risk and operational risk.
8. To study the risk management system which is operated by banks.
9. To find out the implementation of forensic accounting in management of risk in banks.
10. To study the opinion of the stakeholders towards forensic accounting techniques used
by banks to prevent risk.
11. To prepare SWOC of forensic accounting and risk management in detection and
prevention of risk.
12. To suggest suitable measures to make the use of forensic accounting in managing and
minimizing the risks associated with banks.
13. To suggest suitable model for management of risk.
4. Review of Literature of the Study

Review of literature is one of the most important parts of any research study, which
is done by the research scholar. In this part all the information and data which had been
found out in the past by previous researchers has been reviewed so that an attempt can be
made to find out some more information about the topic which is already available from
the past and to go further in depth of the topic, so that more information is made available.
Hence, after starting the research problem, it is important for the researcher to review the
available literature in the specific area of the study.
With the knowledge of available literature, the researcher can gain insight into the
research problem and will enable the researcher to present the right perspective. Therefore,
sometimes, survey of past literature provides useful hypothesis to the researcher.
The present study is designed to determine the implementation of forensic accounting
and risk management techniques used in the banking sector. There are many studies related
to forensic accounting and risk management separately. In this chapter the researcher has
given a review about the related literature to forensic accounting and risk management
with the help of various books, magazines and journals. The researcher has reviewed in
total 100 literatures which includes 7 books, 73 journal articles and 20 newspaper articles
and some reviews are presented below:
1. Owojori. A and Asaolu. T studied on “The Role of Forensic Accounting in Solving
the Vexed Problem of the Corporate World” discussed the need and role of forensic
accounting in solving the problem of the corporates. Because many instances of the
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corporate scandals and failures had put the professional accounting bodies in a new
perception which goes beyond statutory audit and in some ways corporate governance.
The quality and skills required by forensic accountant is honesty, integrity and high
level of competence. The study focused on the critical problems of the corporate world
and if help is taken from forensic accountant, it will reduce fraudulent activities in the
organizations. The forensic accountant can thus be of assistance in various ways that
include investigation accounting, review of the factual situation and provision of
suggestion, regarding possible courses of actions, assisting with the professional and
recovery of assets and co-ordination of other experts, viz. private investigators, forensic
document examiners, consulting engineers etc. The study highlighted that forensic
accounting will play a very important role in corporate field, public accounting and
awareness of government in the near future.
2. George. P and Podoli. L in their study “An Overview of Forensic Accounting in India”
discussed their views on suggesting some measures for implementation of forensic
accounting in India. The study also focused on the uses of forensic accounting,
techniques of fraud detection, how the government agencies combats frauds and the
skills and qualification required by a forensic accountant. The authors discussed that
fraud examination has three dimensions viz. fraud detection, fraud investigation and
fraud prevention. They also focused on the government authorities that combat frauds,
the skills and qualifications required by a forensic accountant was also focused. The
study concluded that forensic accounting can prevent the white collar crimes and will
come up as an effective tool for prevention of frauds. The researcher tried to bring light
in the minds of the regulatory authorities about, giving exposure to forensic accounting,
which will promote ethical behavior.
3. Anitha. S, Salomi. S and Manjula. B conducted a study on “Impact of Forensic
Accounting and Audit in Detecting Fraud” which majorly focused on the impact on
forensic accounting and the challenges faced by the nation. The three main components
for committing white collar crimes are pressure, opportunity and rationalization which
constitutes fraud triangle. A specialized skills is required to detect and prevent fraud, to
solve such frauds the government does forensic audit. The red flags in forensic
accounting and audit was also discussed. The study discussed the importance of
forensic accounting and efficient anti forensic strategies. According to the researchers
there is need to prevent frauds and white collar crimes in the organizations. Forensic
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accounting has become an important tool in prevention of frauds, which can be
developed with cooperation and technological reinforcement.
4. Santomero A. M in the article “Commercial Banking Risk Management: an Analysis
of the process” focuses on the risk management systems through a review conducted in
various financial institutions. The article also covers the analysis of the risks suffered
by the insurance sector and states reports on various risk management techniques used
by the financial institutions and the measures which are taken while practicing these
techniques. The issues has also been discussed and analysed by the author. The
examination accompanies the outcome that bankruptcies in the bank are increasing and
decreasing with little time gap because of which measuring the risk in liquidity flow
tends to become a hurdle to the bankers. Which resulted into inadequate risk
management practices. The authors suggested that the primary concern of the financial
institutions should be that they constantly upgrade their financial risk management
system with changes in pinnacle of bankruptcies and wrongdoings on part of their
officials and directors of the financial institutions.
5. Okoye E.I and Gbegi D.O in their article “An Evaluation of Forensic Accountants to
Planning Management Fraud Risk Detection Procedures” focused on investigating the
benefits of including forensic accountants in the initial planning stage of developing
and effective audit plan to identify management fraud. They found out that when the
risk of management fraud is high, the forensic accountants can effectively make
changes to the extent and nature of audit test. As forensic accountants have unique
methods that are not known by auditors, especially when there is a high risk of
management fraud. According to them if any firm involves forensic accountants in the
fraud risk assessment process then it will lead to better results, than just consulting
them. They recommended that there is a need to train and accredit forensic accountants
in Nigeria. The authors concluded that there is a need to take notice on the issue of
planning management fraud risk detection methods with the help of forensic
accountants.
6. Kessey K. D in the paper “Assessing Credit Risk Management Practices in the Banking
Industry of Ghana: Processes and Challenges” mainly focused on the operationalization
challenges related to credit risk management strategies, policies and its implementation
in banks of Ghana. Some banks may have broad strategies and policies for risk
management but there might be inappropriate implementation. The author studied the
selected banks of Ghana and critically examined the quality of portfolio and found that
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banks possess the documentation of policy guidelines on credit risk with the senior
managers who unintentionally neglect the responsibility of implementation in banks.
The study showed that the banks face some challenges related to credit risk policies
which in turn resulted in low quality of loan portfolio of the bank. The author
recommended that there is a need to frequently review the risk policies of banks and
the policies related to credit risk management that adhere to the international standards
are satisfactory. The banks of Ghana should consider policies which are poverty
friendly while restructuring their policies especially, in developing countries so that the
banking industry can improve its effect on the society.
7. Wael M. H. M in the article “Risk Management of Banking Sector: A Critique Review”
focused on critically reviewing the risk management practices of the banking sector.
The critical evaluation of the author included the banks senior executives understanding
skills and how they monitor the risks which helped in understanding how effective and
integrated is the approach towards risk management. According to the author if the
banks needs to minimize the banks defaults probabilities then there is a need for
additional enhancement and development. The author recommended that awareness
need to be created amongst all the staff members of the banks at all levels about the
possible risks so that they can control the unwanted consequences. Thus if the banks
wish to be well prepared for the unpredicted risks and also want to attain organizational
success with minimizing the possibilities of failure the banks needs to have a better
understanding of the potential risks associated with banking sector.
8. Arora H. and Bhatia M. in the article “The New Paradigm of Risk Management for
Banking Sector Post COVID-19” stated the COVID – 19 new normal as an opportunity
to spot operating models for regulatory reporting, finance and risk management with
industrialization of technologies. The authors discussed in detail about recession due to
lockdown which has skeptically affected the economies as a whole and led to the
depreciation of financial assets. The worst impact of lockdown was increasing
unemployment and loss of income which increased the credit losses. Further the authors
discussed about the existing ALM, credit and market risk management framework and
its limitations and also the regulatory measures to handle the impact of lockdown.
9. Agrawal S. in the article “Why rising forensic audits need clear set of rules; ghosts of
Sahara, Satyam scams still haunt” stated that looking at the upsurge of forensic audits
athwart aberrant companies has confirmed that the market needs more stricter rules.
The author expressed his views regarding the meaning of forensic audit and who does
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forensic audit. Further he discussed that even after decade the Satyam and Sahara scam
are still haunting the market and the regulators and standard base investigation has
become the need of the hour. The unfortunate effect of the COVID – 19 pandemic has
resulted more organisations will be scanned and India will have a transparent policy
and law on forensic audits which will cover regulation, prevention and penalization.
According to the author Institute of Chartered Accountants of India (ICAI) have plans
to introduce new standards which will include matters of financial irregularities and
will give more power to the auditors and the regulators.
10. Dhawan S. in the article “Your Money: 7 new rules impacting savings and investments
from January 1, 2021” discussed about the new guidelines issued by RBI impacting
savings and investments from the year 2021. In order to reduce the instances of fraud
RBI has introduced new rules which will act as a key to personal finance. The rules
included Positive pay mechanisms for cheques, Relaxation in contactless payments, E-
mandate for recurring transaction, Online Dispute Resolution (ODR) system, Standard
term life insurance plan and New Riskometer tool.
5. Conceptual Framework of the Study

Conceptual frameworks are abstract representations, connected to the research project’s
goals that direct the collection and analysis of data. The researcher has explained the
concepts related forensic, forensic accounting, forensic accountant, fraud, types of fraud,
fraud examination, fraud triangle. Fraud tree, financial auditor, risk, risk management,
types of risk and other concepts related to the study. Some concepts are mentioned below:
5.1 Concepts Related to Forensic
1. According to Webster dictionary forensic means belonging to courts of
judicature; used in courts or legal proceedings.
2. Forensic, in a general sense, means "related to or used in courts of law" or "used
for formal public debate or discussion
3. According to law dictionary forensic means belonging to courts of justice.
5.2 Concepts Related to Forensic Accounting

1. Tommie W. Singleton has defined forensic accounting as the term forensic
accounting refers to the comprehensive view of fraud investigation. It includes
preventing frauds and analyzing antifraud controls. Forensic accounting would
include the audit of accounting records in search for evidence of fraud; a fraud
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audit. A fraud investigation to prove or disprove a fraud would be part of forensic
accounting. It also includes the gathering of nonfinancial information, such as
interviews of all related parties to a fraud, when applicable. Forensic accounting
includes writing a report to management or court. Serving as an expert witness and
litigation support are part of forensic accounting.
2. Forensic accounting has also been defined, in the words of Aaron J. Singleton, as
a general term used to describe any financial investigation that can result in a legal
consequence. Fraud auditing is a specialized discipline within forensic accounting,
which investigates a particular criminal activity, namely fraud. Investigative
auditing involves reviewing financial documentation for a specific purpose, which
could relate to litigation support and insurance claims as well as criminal matters.
3. According to Dick, Samuel & Blessing Forensic accounting provides an
accounting analysis that can be brought forward as evidence in front of the court,
on that basis judgment and resolve of dispute are made.
4. Cendrowski H, Martin C. P, Petro L. W. have defined forensic accounting as a
comprehensive form of fraud deterrence. According to them, fraud deterrence is
the proactive identification and removal of the causal and enabling factors of fraud.
Fraud deterrence is based on the premise that fraud is not a random occurrence;
fraud occurs where the conditions are right for it to occur. Fraud deterrence attacks
the root causes and enablers of fraud; this analysis could reveal potential fraud
opportunities in the process, but is performed on the premise that improving
organizational procedures to reduce or eliminate the causal factors of fraud is the
single best defense against fraud. Fraud deterrence involves both short-term
(procedural) and long-term (cultural) initiatives.
5. According to the AICPA (2011), Forensic accounting is the application of
accounting principles, theories, and discipline to facts or hypotheses at issues in a
legal dispute and encompasses every branch of accounting knowledge.‖ They
classify forensic accounting into two categories: (a) Investigative services that may
or may not lead to courtroom testimony; and (b) Litigation services that recognise
the role of the accountant as an expert, consultant, or other role.
6. George A. Manning defines Forensic accounting as the science of gathering and
presenting financial information in a form that will be accepted by a court of
jurisprudence against perpetrators of economic crimes. The term forensic
accounting means financial fraud investigation which comprise of analysis of
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accounting records to prove or disprove financial fraud and serving as an expert
witness in Court to prove or disprove the same.
5.3 Concepts Related to Fraud

1. According to Aaron J. Singleton (2010) fraud means different things to different
people under different situations. Fraud can be perceived deception or fraud can be
perceived as the opposite of truth, justice, fairness, and equity.
2. Tommie. W. Sigleton defined fraud in the way of fraud cycle. The fraud cycle
essentially begins with the plans of the fraudster leading up to the committing of
the fraud act. Once committed, the fraudster converts the asset to cash, if necessary,
and conceals the fraud.
3. The U.S. Securities and Exchange Commission (SEC) has presented its view
towards fraud that fraud is an activity which contains the following reactions:- It
shall be unlawful for any person, directly or indirectly, by the use of any means or
instrumentality of interstate commerce, or the mails, or of any facility of any
national securities exchange (a) To employ any device, scheme, or artifice to
defraud, (b) To make any untrue statement of a material fact or to omit to state a
material fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, or Fraud in Society (c)
To engage in any act, practice, or course of business this operates or would operate
as a fraud or deceit upon any person, in connection with the purchase or sale of any
security.
4. Howard Silverstone, Michael Sheetz (2007) classified the fraud in following
category:
i. Sales and Collections
ii. Purchases and Payments
iii. Payroll and Personnel
iv. Inventory and Warehousing
v. Capital Acquisition and Repayment
5. Chakrabarty (2013) defines fraud as any behaviour by which one person intends
to gain a dishonest advantage over another. It is an act or omission intended to cause
wrongful gain to one person and wrongful loss to the other either by way of
concealment of facts or otherwise.
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6. The U.S. Supreme Court in 1887 provided a definition of fraud in the civil sense
as:
First: That the defendant has made a representation in regard to a material fact;
Second: That such representation is false;
Third: That such representation was not actually believed by the defendant, on
reasonable grounds, to be true;
Fourth: That it was made with intent that it should be acted on;
Fifth: That it was acted on by complainant to his damage; and
Sixth: That in so acting on it the complainant was ignorant of its falsity, and
reasonably believed it to be true.
The first of the foregoing requisites excludes such statements as consist merely in
an expression of opinion of judgment, honestly entertained; and again excepting in
peculiar cases, it excludes statements by the owner and vendor of property in respect
of its value.
5.4 Concept Related to Fraud Triangle
1. American criminologist Donald Cressey developed a theory known as the Fraud
Triangle that explains the factors that lead to fraud and other unethical behavior.
When businesses and organizations understand the Fraud Triangle, they can more
effectively combat criminal behavior that negatively impacts their operations.
Source: www.brumellgroup.com
a. The three factors that make up the fraud triangle are:
1. Pressure: Most individuals require some form of pressure to commit a criminal
act. This pressure does not need to necessarily make sense to outside observers,
but it does need to be present. Pressures can include money problems, gambling
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debts, alcohol or drug addiction, overwhelming medical bills. Greed can also
become a pressure, but it usually needs to be associated with injustice. “The
company has not been paying me what I am really worth,” for instance.
2. Opportunity: An opportunity to commit the act must be present. In the case of
fraud, usually a temporary situation arises where there is a chance to commit the
act without a high chance of being caught. Companies that are not actively
working to prevent fraud can present repeated opportunities to individuals who
meet all three criteria of the fraud triangle.
3. Rationalization: The mindset of a person about to commit an unethical act is one
of rationalization. The individual manages to justify what he or she is about to do.
Some may think they are just going to borrow the stolen goods, or that they need
the money more than the “big” company they are stealing from.
b. Using the Fraud Triangle
The fraud triangle provides a useful framework for organizations to
analyze their vulnerability to fraud and unethical behavior, and it provides a way
to avoid being victimized. Almost universally, all three elements of the triangle
must exist for an individual to act unethically. If a company can focus on
preventing each factor, it can avoid creating fertile ground for bad behavior.
c. Relieve Pressure
Companies only have so much impact on the personal lives of customers
and employees. Identifying any possible pressures that the company could have
an impact on – such as money problems, substance abuse, etc. – can be helpful.
Working to relieve these issues can help prevent criminal behavior.
d. Minimize Opportunity
Companies should always be looking to minimize the opportunity for
fraud and unethical behavior. Brumell Group can assist with this. Working as
a Fraud Consultant, Brumell Group can help companies analyze operations,
review internal controls and address any current or future vulnerabilities. It is a
worthwhile investment for any organization that wants to remain secure against
the hazards of fraud.
e. Target Rationalization
One way to prevent fraud is to keep individuals from ever being able to rationalize
the behavior in the first place. Companies can create a “zero tolerance” policy
towards fraudulent behavior, and remind employees and customers of this policy
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on a regular basis. Companies can also make certain that individuals know the
cost of fraud to other customers and other employees. Letting individuals know
that there are heavy consequences makes it more difficult to minimize the
unethical behavior.
5.5 Concepts Related to Financial Auditors
1. According to ICPAP the term financial auditor broadly applies to any auditor of
financial information or the financial reporting process. The largest classification
of financial auditors is those who work for public accounting firms and perform
audits of financial statements for public companies.
2. According to Cambridge dictionary financial auditor is someone whose job is to
financial audits to make certain that a company is recording its financial
information correctly and completely. Financial auditors are professionals who
inspect, examine and assess the financial statements of a company.
5.6 Concept Related to Litigation Support
1. According to ICPAP Litigation support refers to a forensic accountant assisting
attorneys in prosecuting or defending a case in the legal system. That support can
take on a variety of skills but ultimately is intended to conclude with the forensic
accountant offering an opinion in a court of law as an expert witness on whether a
fraud occurred.
2. According to Oyedokun G. E. Litigation support provides assistance of a matter
which is accounting in nature and involves existing or pending litigation. It
primarily deals with issues related to the quantification of economic damages.
Litigation support assignment would be typically calculating the economic loss
which has occurred from a breach of contract
5.7 Concept Related to Risk
1. Bickelhaupt D. L. defines risk as uncertainty of financial loss.
2. Rejda G. E. defines risk as uncertainty concerning the occurrence of a loss
3. Jr. Williams A. C. and Heins R.M., defined risk as the variation in the outcomes
that could occur over a specified period If only one outcome is possible in the
variation then the risk is zero. If many outcomes are possible the risk is not null.
4. According to Athearn J.L., Pritchett S.T. and Schmit J.T. risk is a state in which
losses are possible. Risk has no meaning without loss being the outcome of
concern.
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5. According to Vaughan E. J., risk is a condition in which there is a possibility of
an adverse deviation from a desired outcome that is expected or hoped for.
5.8 Concept Related to Risk Management
1. According to the Corporate Finance Institute risk management encircles the
identification, response and analysis to risk factors which forms a part of the life
of a business.
2. According to K. Srinivas risk management is a planned and a structured method
geared towards serving the project team, take the correct decision at the correct
time to identify, classify, quantify the risks and control and manage the risks.
3. Kolomiyets T., describes risk management is an organizational model aimed
towards evolving the standard of management processes; it stands out by
analysing the events that have not yet materialized within the organization.
6. Research Methodology
For the purpose of the study both primary as well as secondary data has been utilized
according to the objectives of the study to arrive at particular inferences. Data analysis has
done by using statistical tools to draw suitable conclusions and suggestions. The sources
through which it has done are as follows:
(1) Research Design
It shows the framework of the techniques and methods applied by the researcher,
which includes literature review, data collection from respondents, statistical
techniques, observation and analysis. The research design is as follows:
Literature Statistical
Data Collection Observation Analysis
Review Techniques
Facts and
Books Bank Manager Percentage Statistical Data
Figures
Newspapers Bank Officers Mean Interpretation
Standard
Journals Bank Customers Report Writing
Deviation
Magazines Forensic ANOVA
Accountants
Chi - Square
Thesis
Test
Census Report
Annual Report
(2) Sources of Data
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a. Primary Data
The descriptive approach is a widely used methodology in the research

field. This approach is reliable on the data obtained which is based on actual
surveys. The exact information and current situation is obtained using the
descriptive approach. Descriptive approach of research has recently developed in
the investigation fields. This approach seeks to describe a field or a problem by
using questionnaire method.
For the purpose of the present study, the researcher has selected
questionnaire method and interview method. The main source of primary data
are the respondents, which includes the stakeholders of public and private sector
banks from Mumbai.
b. Secondary Data
Secondary data is one type of quantitative data which has been collected,
analysed and presented by someone else for a different purpose. As a secondary
source of data collection the researcher has taken the help of relevant books and
journals on forensic accounting and risk management, newspaper, magazines,
census report, annual report, electronic delivered information, research papers,
dissertations and theses of research scholars.
(3) Period of the Study

The study covers the period from the year 2009 – 2010 to 2018 – 2019 and
the information and data available related to forensic accounting are taken for the
purpose of the study.
(4) Area of the Study

The present study is undertaken from the geographical region selected from
Mumbai which includes Mumbai City i.e. From Colaba till Mahim in the western line,
till Sion in the central line and till Guru Tegh Bahadur in the harbour line and Mumbai
Suburban i.e. From Bandra till Dahisar in western line, from Kurla till Mulund in
central line and from Chunabhatti till Mankhurd. The banks which comes under this
area are selected and the employees from these bank branches are taken as the sample
size.
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(5) Universe of the Sample
The banks operating in Mumbai are taken as the universe for the study by the
researcher:
1. The total number of banks in Mumbai are 42, which includes 20 Public Sector
banks and 22 Private Sector Banks.
For the purpose of the study 2 Public Sector Banks and 2 Private Sector Banks are
selected. The banks which are randomly chosen are State Bank of India, Bank of
Baroda, Yes Bank and HDFC Bank.
2. In all there are 698 bank branches in the Mumbai which consists of 315 branches
of SBI, 208 branches of BOB, 56 branches of Yes Bank and 119 branches of HDFC
Bank is considered as the universe.
30 branches each are randomly selected from the universe of the selected banks.
3. The employees and customers from these branches are considered as the
respondents for the study of which 1 branch manager, 1 assistant branch manager,
officers and 3 – 5 customers are selected from each branch. The total number of
respondents is 700.
(6) Sample Size

Out of 20 Public Sector Banks and 22 Private Sector Banks 2 banks from each
category is randomly selected; namely SBI, BOB, Yes Bank and HDFC Bank which
are operating in Mumbai. At present, they have 698 branches operating in Mumbai.
They are 315 branches of SBI, 208 branches of BOB, 56 branches of Yes Bank and
119 branches of HDFC Bank. Out of these 120 branches, i.e. 30 branches from each
bank is selected randomly for the purpose of the study.
Thirty branches of SBI, Thirty branches of BOB, Thirty branches of Yes Bank
and Thirty branches of HDFC bank are selected by using simple random sampling
method. The researcher has used simple random sampling and area sampling. The
sample size is as follows:
Table 1.1
Sample Size of Bank and Bank Branches
SR.NO. BANK DETAILS NUMBERS PARTICULARS
1. Selected Banks 04 State Bank of India, Bank of Baroda, Yes
Bank and HDFC Bank out of 42 banks. (20
16
Public Sector Banks and 22 Private Sector
Banks)
2. Public Sector Banks 02 State Bank of India and Bank of Baroda
(Out of 20)
3. Private Sector Banks 02 Yes Bank and HDFC Bank (Out of 22)
4. No. of Bank branches 60 Public sector banks branches for 2
selected from public selected banks are 523 i.e. SBI-315 and
sector banks – 30 each (30 BOB-208.
x 2) Private sector banks branches for 2
5. No. of bank branches 60 selected banks are 175 i.e. Yes bank 56
selected from private and HDFC 119 respectively.
sector banks – 30 each (30
x 2)
6. Selected Location of the 30 Locations are Colaba, Nariman Point,
branches Churchgate, Charni Road, Worli, Dadar,
Prabhadevi, Matunga, Sion, Kurla,
Ghatkopar, Mulund, Bhandup, Chembur,
Wadala, Borivali, Santacruz, Bandra, Vile
Parle, Andheri West, Andheri East,
Goregaon, Kandivali, Jogeshwari, Malad,
Vikhroli, Grant Road, Kala Nagar, Jacob
Circle and Mahalaxmi.
7. Total bank 120 SBI 30 Branches, BOB 30 Branches, Yes
branches 30 Branches and HDFC 30 Branches in
selected i.e. 4 Mumbai. The sample of 120 branches are
each location selected out of total 698 branches. Hence,
(4 x 30) sample size of present study from bank
branches is 10.75 percent of total universe
of 4 banks (i.e. 698).
Source: www.rbi.org.in
For the purpose of the study different methods are used for collection of data
from the stakeholders. The higher officials were administered with the help of an
interview schedule and two different questionnaires are used to collect response from
the managers, officers, forensic accountants and customers. The respondents are
classified as under:
Questionnaire 1:
17
Every bank has a forensic accounting department and forensic accountant are
associated with the forensic accounting department. For the purpose of the study, an
interview schedule is prepared to understand the policy, processes, personnel and
control systems that is effectively used in measuring, monitoring and controlling the
fraud risks, so the forensic accountant of the selected banks are interviewed.
Table 1.2
Sample Size of Interview
Name of Bank Forensic Accountant Forensic Accountant
(Response Expected) (Response Received)
SBI 08 08
BOB 08 08
YES BANK 08 07
HDFC 08 07
Total 32 30
The respondents include 8 forensic accountant from State Bank of India and
Bank of Baroda each, 7 forensic accountant from Yes Bank and HDFC Bank each.
Questionnaire 2:
The bank employees working in the bank branches are closely associated with
the risk. For the purpose of the study to understand the various techniques of risk
management used by the banks are administered with the help of questionnaire.
Table 1.3
Sample Size of Respondents
Name of Bank Managers Officers Total
SBI 60 15 75
BOB 60 15 75
YES BANK 60 15 75
HDFC 60 15 75
Total 240 60 300
The respondents selected are 1 branch manager, 1 assistant branch manager
and officers. Thus sample size is selected as
1) Branches of Public sector banks and Private sector banks.
(a) Percent of bank branches selected to universe (698): 10.75 i.e. 75 x 100/ 698.
Questionnaire 3:
The level of awareness of customers towards forensic accounting techniques
used for management of risks in banks and the risk associated with banks is collected
with the help of questionnaire.
18
Table 1.4
Sample Size of Respondents
Name of Bank Customers Total
SBI 100 100
BOB 100 100
YES BANK 100 100
HDFC 100 100
Total 400 400
The response for awareness level of customers and risks in banks is collected
from 3 – 5 customers from each branch of the selected banks.
7. Hypotheses of the Study

In the light of the above cited objectives the following hypotheses have been set
up by the researcher for the purpose of the study:
Hypothesis 1:
Null Hypothesis(H01): The level of awareness of stakeholders of forensic accounting
techniques used for management of risks in banks is independent of public sector and
private sector banks.
Alternative Hypothesis(H11): The level of awareness of stakeholders of forensic
accounting techniques used for management of risks in banks is dependent of public sector
and private.
The stated hypothesis is tested using Chi – Square Test, at 5% level of significance,
taking banking sector as the variable and responses from customers, bank managers and
officers.
For the purpose of hypothesis testing 1 the following sub hypotheses are considered
from customer responses received from 400 respondents of selected banks:
C – Hy 1: The level of awareness of stakeholders of Frauds in Banking Industry is

independent of public sector and private sector banks.
C – Hy 2: The level of awareness of stakeholders of forensic accounting is independent of
public sector and private sector banks.
C – Hy 3: The level of awareness of stakeholders about techniques used by banks for
managing risk is independent of public sector and private sector banks.
19
C – Hy 4: The level of awareness of stakeholders about Positive Pay Mechanism for
cheque guideline introduced by RBI is independent of public sector and private
sector banks.
C – Hy 5: The level of awareness of stakeholders about Relaxation in Contactless
Payments guideline introduced by RBI is independent of public sector and
C – Hy 6: The level of awareness of stakeholders about E – mandate for Recurring
Transactions guideline introduced by RBI is independent of public sector and
C – Hy 7: The level of awareness of stakeholders about Online Dispute Resolution System
guideline introduced by RBI is independent of public sector and private sector
banks.
Table 7.1 (A)

Testing of Hypothesis: Awareness of Stakeholders of Forensic Accounting Techniques
used for Management of Risks in Banks (Customers)
No. Sub - Hypotheses Variables Degree Chi – Signifi Accepted
of Square cance / Rejected
Freedom Value value
C- The level of awareness of stakeholders of Banking 1 7.832 .005 Rejected
Hy Frauds in Banking Industry is independent of Sector
1 public sector and private sector banks
C- The level of awareness of stakeholders of Banking 1 .104 .747 Accepted
Hy forensic accounting is independent of public Sector
2 sector and private sector banks
C- The level of awareness of stakeholders about Banking 1 12.460 .000 Rejected
Hy techniques used by banks for managing risk Sector
3 is independent of public sector and private
sector banks
C- The level of awareness of stakeholders Banking 1 7.390 .007 Rejected
Hy about Positive Pay Mechanism for cheque Sector
4 guideline introduced by RBI is independent
of public sector and private sector banks
C- The level of awareness of stakeholders Banking 1 14.472 .000 Rejected
Hy about Relaxation in Contactless Payments Sector
C- The level of awareness of stakeholders Banking 1 .062 .803 Accepted
Hy about E – mandate for Recurring Sector
6 Transactions guideline introduced by RBI is
independent of public sector and private
sector banks
20
C- The level of awareness of stakeholders Banking 1 2.388 .122 Accepted
Hy about Online Dispute Resolution System Sector
Source: Compiled from Primary Data
1. Table 7.1 (A) states that observed value is 7.832, significance value is .005. Since
significance value is less than 0.05, the hypothesis C – Hy 1 is rejected.
significance value is greater than 0.05, the hypothesis C – Hy 2 is accepted.
3. Table 7.1 (A) states that observed value is 12.460, significance value is .000 significance
value is less than 0.05, the hypothesis C – Hy 3 is rejected.
For the purpose of hypothesis testing 1 the following sub hypotheses are considered from
employee’s responses received from 300 respondents of selected banks:
E – Hy 1: The level of awareness of stakeholders of forensic accounting is independent of

E – Hy 2: The level of awareness of stakeholders about forensic accounting technique
Computer Assisted Review (CAR) used for management of risk is independent
of public sector and private sector banks.
Data Mining used for management of risk is independent of public sector and
Benford’s Law used for management of risk is independent of public sector and
21
Ratio Analysis used for management of risk is independent of public sector and
Data Matching used for management of risk is independent of public sector and
Theory of Relative Size Factor (RSF) used for management of risk is
Genogram & Timelines Analysis used for management of risk is independent
of public sector and private sector banks.
Trending used for management of risk is independent of public sector and
Same, Same, Different used for management of risk is independent of public
sector and private sector banks.
Outlier Detection used for management of risk is independent of public sector
and private sector banks.
E – Hy 12: The level of awareness of stakeholders about techniques used by banks for
managing risk of fraud is independent of public sector and private sector banks.
E – Hy 13: The level of awareness of stakeholders about the Basel guidelines for risk
management of fraud is independent of public sector and private sector banks.
E – Hy 14: The level of awareness of stakeholders about RBI guidelines for corporate
governance is independent of public sector and private sector banks.
Table 7.1 (B)

Testing of Hypothesis: Awareness of Stakeholders of Forensic Accounting Techniques
used for Management of Risks in Banks (Managers and Officers)
No. Sub - Hypotheses Variables Degree Chi – Signifi Accepted
of Square cance / Rejected
Freedom Value value
22
E- The level of awareness of stakeholders
Banking
Hy of forensic accounting is independent of 1 77.233 .000 Rejected
Sector
1 public sector and private sector banks
The level of awareness of stakeholders about
E- forensic accounting technique Computer
Banking
Hy Assisted Review (CAR) used for management 1 84.615 .000 Rejected
Sector
2 of risk is independent of public sector and
private sector banks
E-
forensic accounting technique Data Mining Banking
Hy 1 8.556 .003 Rejected
used for management of risk is independent Sector
3
E- forensic accounting technique Benford’s
Banking
Hy Law used for management of risk is 1 21.429 .000 Rejected
Sector
4 independent of public sector and private
sector banks
E-
forensic accounting technique Ratio Analysis Banking
Hy 1 1.330 .249 Accepted
5
E-
forensic accounting technique Data Matching Banking
Hy 1 .287 .592 Accepted
6
E- forensic accounting technique Theory of
Banking
Hy Relative Size Factor (RSF) used for 1 1.003 .317 Accepted
Sector
7 management of risk is independent of public
sector and private sector banks
E- forensic accounting technique Genogram &
Banking
Hy Timelines Analysis used for management of 1 1.003 .317 Accepted
Sector
8 risk is independent of public sector and
E-
forensic accounting technique Trending used Banking
Hy 1 .000 1.000 Accepted
for management of risk is independent of Sector
9
public sector and private sector banks
E- forensic accounting technique Same, Same,
Banking
Hy Different used for management of risk is 1 21.429 .000 Rejected
Sector
sector banks
E- forensic accounting technique Outlier
Banking
Hy Detection used for management of risk is 1 59.920 .000 Rejected
Sector
sector banks
23
E-
techniques used by bank for managing risk o Banking
f fraud is independent of public sector and Sector
12
E-
the Basel guidelines for risk management of Banking
fraud is independent of public sector and Sector
13
E-
RBI guidelines for corporate governance is Banking
independent of public sector and private Sector
14
sector banks
1. Table 7.1 (B) states that observed value is 77.233, significance value is .000. Since
significance value is less than 0.05, the hypothesis E – Hy 1 is rejected.
5. Table 7.1 (B) states that observed value is 1.330, significance value is. .249. Since
significance value is greater than 0.05, the hypothesis E – Hy 5 is accepted.
9. Table 7.1 (B) states that observed value is .000, significance value is 1.000. Since
24
significance value is less than 0.05, the E – Hy 12 is rejected.
The table 7.1 (A) and (B) clearly states that the null hypothesis “The level of awareness of
stakeholders of forensic accounting techniques used for management of risks in banks is
independent of public sector and private sector banks” is rejected. It can be clearly seen that
the awareness level of stakeholders is similar according to the banking sector. The results show
that there is less awareness amongst the stakeholders.
Hypothesis 2:
Null Hypothesis(H02): Customer education on fraud risks and preventive measures adopted
for risk management is independent of public sector and private sector banks.
Alternative- Hypothesis(H12): Customer education on fraud risks and preventive measures
adopted for risk management is dependent of public sector and private sector banks.
taking banking sector as the variable and responses from customers.
customer responses received from 400 respondents of selected banks:
C – Hy 1: Customer education about types of frauds customer can come across is

C – Hy 2: Customer education about preventive measures to be taken to avoid fraud is
C – Hy 3: Customer education about safety tip check your account activity regularly to
avoid fraud is independent of public sector and private sector banks.
C – Hy 4: Customer education about safety tip keep your PIN and passwords secret
to avoid fraud is independent of public sector and private sector banks.
25
C – Hy 5: Customer education about safety tip use a strong password for online banking
& change passwords periodically to avoid fraud is independent of public sector
C – Hy 6: Customer education about safety tip do not give out account info over the phone
or email to avoid fraud is independent of public sector and private sector banks.
C – Hy 7: Customer education about safety tip don’t click links embedded in emails
C – Hy 8: Customer education about safety tip use anti-virus protection software,
firewalls and spyware blockers to avoid fraud is independent of public sector
C – Hy 9: Customer education about safety tip don’t use public computers for online
banking & Check for secure connections to avoid fraud is independent of public
sector and private sector banks.
C – Hy 10: Customer education about safety tip report lost cards immediately
C – Hy 11: Customer education about safety tip be aware of your surroundings at ATMs
C – Hy 12: Customer education about safety tip use secure mailboxes only to avoid fraud
is independent of public sector and private sector banks.
C – Hy 13: Customer education about safety tip minimize check writing & if you write,
write checks in permanent blue ink, do not leave blank space on your check,
make sure checks can’t be seen through envelopes etc. to avoid fraud is
independent of public sector and private sector banks
Table 7.2
Testing of Hypothesis: Customer Education on Fraud Risks and Adoption of Preventive
Measures for Risk Management (Customers)
No. Sub Hypotheses Variables Degree of Chi – Signifi Accepted
Freedom Square cance /
Value Value Rejected
C– Customer education about types of frauds
Banking
Hy customer can come across is independent 1 33.915 .000 Rejected
Sector
1 of public sector and private sector banks
C– Customer education about preventive
Banking
Hy measures to be taken to avoid fraud is 1 23.377 .000 Rejected
Sector
2
26
sector banks
Customer education about safety tip check
C–
your account activity regularly to avoid Banking
3
Customer education about safety tip keep
C–
your PIN and passwords secret to avoid Banking
4
Customer education about safety tip use a
C– strong password for online banking &
Banking
Hy change passwords periodically to avoid 1 3.256 .071 Accepted
Sector
5 fraud is independent of public sector and
Customer education about safety tip do not
C–
give out account info over the phone or Banking
email to avoid fraud is independent of Sector
6
Customer education about safety tip don’t
C–
click links embedded in emails to avoid Banking
7
Customer education about safety tip use
C– anti – virus protection software, firewalls
Banking
Hy and spyware blockers to avoid fraud is 1 0.562 0.454 Accepted
Sector
sector banks
Customer education about safety tip don’t
C– use public computers for online banking &
Banking
Hy check for secure connections to avoid fraud 1 0.000 1.000 Accepted
Sector
9 is independent of public sector and private
sector banks
Customer education about safety tip report
C–
lost cards immediately to avoid fraud is Banking
10
sector banks
Customer education about safety tip be
C–
aware of your surroundings at ATMs to Banking
avoid fraud is independent of public sector Sector
11
and private sector banks
Customer education about safety tip use
C–
secure mailboxes only to avoid fraud is Banking
12
sector banks
Customer education about safety tip
C– minimize check writing & if you write,
Banking
Hy write checks in permanent blue ink, do not 1 0.527 .468 Accepted
Sector
13 leave blank space on your check, make
sure checks can’t be seen through
27
envelopes etc. to avoid fraud is
sector banks
Customer education about safety tip
C– registration of mobile number/ change of
Banking
Hy mobile number to avoid fraud is 1 28.598 .000 Rejected
Sector
sector banks
1. Table 7.2 states that observed value is 33.915, significance value is .000. Since
3. Table 7.2 states that observed value is 8.487, significance value is .004. Since significance
value is greater than 0.05, the hypothesis C – Hy 4 is accepted.
9. Table 7.2 states that observed value is 0.000, significance value is 1.000. Since
28
Table 7.2, clearly states that the alternative hypothesis “Customer education on fraud risks
and preventive measures adopted for risk management is dependent of public sector and private
sector banks” is accepted. It can be clearly seen that the results of customer education in public
sector and private sector banks are similar. Both the banks have educated their customers on
similar preventive measures.
Hypothesis 3:
Null Hypothesis(H03): There is no significant difference in the agreement levels of the

customers on opinion of forensic accounting with respect to their education.
Alternative Hypothesis(H13): There is a significant difference in the agreement levels of the
customers on opinion of forensic accounting with respect to their education.
The stated hypothesis is tested using One-way ANOVA Test taking education as the
variable and responses from customers.
customer responses received from 400 respondents of selected banks:
C – Hy 1: There is no significant difference in the agreement levels of the customers on

opinion of Forensic accounting is the merger of forensic science and accounting
with respect to their education.
opinion of Forensic accounting provides litigation support in prosecution
process with respect to their education.
opinion of Forensic accounting is used to detect and prevent fraud with respect
to their education.
opinion of Use of forensic accounting in place of financial accounting may be
29
more effective for the fraud prevention and detection with respect to their
education.
opinion of Knowledge of forensic accounting strengthens fraud control in the
business with respect to their education.
opinion of financial fraud can be reduced to minimum level with the use of
forensic accounting with respect to their education.
opinion of Forensic accounting may prove more useful than financial
accounting with respect to their education.
opinion of Forensic accounting will prove as an efficient tool of fraud
prevention with respect to their education.
Table 7.3
Summary of the ANOVA Test Value of the Hypothesis 3: Agreement Levels of the
Customers on Opinion of Forensic Accounting
No. Statements Sum of Degree Mean Signifi Accepted
Squares of Square cance /
freedom Value Rejected
C– There is no significant difference in
Hy the agreement levels of customers
1 on opinion of Forensic accounting is
the merger of forensic science and 12.098 5 2.420 .164 Accepted
accounting with respect to their
education
2 on opinion of Forensic accounting
provides litigation support in 27.304 5 5.461 .009 Rejected
prosecution process with respect to
their education
3 on opinion of Forensic accounting is 6.716 5 1.343 .501 Accepted
used to detect and prevent fraud with
respect to their education
30
4 on opinion of Use of forensic
accounting in place of financial
accounting may be more effective 20.245 5 4.049 .045 Rejected
for the fraud prevention and
detection with respect to their
education
5 on opinion of Knowledge of forensic
accounting strengthens fraud control 16.398 5 3.280 .113 Accepted
in the business with respect to their
education
6 on opinion of Financial fraud can be
reduced to minimum level with the 12.138 5 2.428 .246 Accepted
use of forensic accounting with
respect to their education
7 on opinion of Forensic accounting
may prove more useful than 20.042 5 4.008 .037 Rejected
financial accounting with respect to
their education
C– Forensic accounting will prove as an
Hy efficient tool of fraud prevention 16.820 5 3.364 .091 Accepted
8
1. Table 7.3 states that when the agreement levels of the customers are evaluated at different
education levels; the observed value 0.164 is greater than the significance value 0.05,
hence the hypothesis C – Hy 1 is accepted.
education levels; the observed value 0.009 is less than the significance value 0.05, hence
the hypothesis C – Hy 2 is rejected.
31
income groups; the observed value 0.091 is greater than the significance value 0.05, hence
the hypothesis C – Hy 8 is accepted.
Table 7.3, clearly states that the null hypothesis “There is no significant difference in the
agreement levels of the customers on opinion of forensic accounting with respect to their
education” is accepted. It can be clearly seen that there is no difference in the customers
opinion with respect to their opinion as even after being educated majority of the customers
are not aware about forensic accounting.
Hypothesis 4:
Null hypothesis(H04): The actual use of risk management mechanisms, and the perceived
level of effectiveness is independent of public sector and private sector banks.
Alternative Hypothesis(H14): The actual use of risk management mechanisms, and the
perceived level of effectiveness is dependent of public sector and private sector banks.
taking banking sector as the variable and responses from bank managers and officers.
32
E – Hy 1: The actual use of risk management mechanisms, and the perceived level of
effectiveness of Corporate Governance is independent of public sector and
effectiveness of Staff Rotation Policy is independent of public sector and private
sector banks.
E – Hy 3: The actual use of risk management mechanisms, and perceived level of
effectiveness of Digital analysis software is independent of public sector and
effectiveness of Internal Audit is independent of public sector and private sector
banks.
effectiveness of surveillance equipment is independent of public sector and
effectiveness of Computer Assisted Audit Tools (CAATs) is independent of
effectiveness of Fraud Hotline is independent of public sector and private sector
banks.
effectiveness of Red Flags is independent of public sector and private sector
banks.
effectiveness of Data Base Management system with controls is independent of
effectiveness of Reconciliation of Statements is independent of public sector
effectiveness other mechanism is independent of public sector and private sector
banks.
33
Table 7.4
Testing of Hypothesis: Use of Risk Management Mechanisms, and Perception of Level
of Effectiveness (Managers and Officers)
No. Sub Hypotheses Variables Degree Chi – Signific Accepted
of Square ance / Rejected
Freedom Values Value
E– The actual use of risk management
Hy mechanisms, and perceived level of
Banking
1 effectiveness of Corporate Governance is 1 16.727 .000 Rejected
Sector
sector banks
Banking
2 effectiveness of Staff Rotation Policy is 1 21.429 .000 Rejected
Sector
sector banks
Banking
3 effectiveness of Digital analysis software is 1 1.301 .254 Accepted
Sector
sector banks
Hy mechanisms, and the perceived level of
Banking
4 effectiveness of Internal Audit is 1 0.985 .321 Accepted
Sector
sector banks
Banking
5 effectiveness of surveillance equipment is 1 22.796 .000 Rejected
Sector
sector banks
Banking
6 effectiveness of Computer Assisted Audit 1 4.824 .028 Rejected
Sector
Tools (CAATs) is independent of public
sector and private sector banks
Banking
7 effectiveness of Fraud Hotline is 1 17.479 .000 Rejected
Sector
sector banks
Hy mechanisms, and the perceived level of Banking
1 48.837 .000 Rejected
8 effectiveness of Red Flags is independent Sector
Banking
Hy mechanisms, and the perceived level of 1 59.606 .000 Rejected
Sector
9 effectiveness of Data Base Management
34
system with controls is independent of
Banking
10 effectiveness of Reconciliation of 1 39.901 .000 Rejected
Sector
Statements is independent of public sector
and private sector banks
Banking
11 effectiveness other mechanism is 1 89.610 .000 Rejected
Sector
sector banks
value is less than 0.05, the hypothesis E – Hy 1 is rejected.
value is greater than 0.05, the hypothesis E – Hy 3 is rejected.
value is greater than 0.05, the hypothesis E – Hy 4 is accepted.
35
Table 7.4, clearly states that the null hypothesis “The actual use of risk management
mechanisms, and the perceived level of effectiveness is independent of public sector and
private sector banks” is rejected. It clearly states that the perception of employees of public
sector and private sector banks towards effective of use of risk management techniques is same.
Hypothesis 5
Null Hypothesis (H05): The fraud risk management methods used by the banks are
independent of their being in public and private sector.
Alternative Hypothesis (H15): The fraud risk management methods used by the banks are
dependent of their being in public and private sector.
taking banking sector as the variable and responses from bank managers, officers and
forensic accountants.
E – Hy 1: The fraud risk management method comprehensive risk measurement approach

used by the banks are independent of their being in public and private sector.
E – Hy 2: The fraud risk management method consistent risk management policies
approved by the board used by the banks are independent of their being in public
and private sector.
E – Hy 3: The fraud risk management method guidelines and other parameters should be
mentioned to govern risk taking used by the banks are independent of their being
in public and private sector.
E – Hy 4: The fraud risk management method strong MIS for reporting, monitoring and
controlling risks used by the banks are independent of their being in public and
private sector.
E – Hy 5: The fraud risk management method effective and comprehensive risk reporting
framework used by the banks are independent of their being in public and
private sector.
36
E – Hy 6: The fraud risk management method separate risk management framework for
independent departments used by the banks are independent of their being in
public and private sector.
E – Hy 7: The fraud risk management method periodical review and evaluation used by
the banks are independent of their being in public and private sector.
Table 7.5 (A)

Testing of Hypothesis: Fraud Risk Management Method used by Banks (Managers and
Officers)
The fraud risk management method
E– comprehensive risk measurement
Banking
Hy approach used by the banks are 1 0.502 .478 Accepted
Sector
1 independent of their being in public and
private sector
E– consistent risk management policies
Banking
Hy approved by the board used by the banks 1 0.018 .892 Accepted
Sector
2 are independent of their being in public
and private sector
E– guidelines and other parameters should
Banking
Hy be mentioned to govern risk taking used 1 2.381 .123 Accepted
Sector
3 by the banks are independent of their
being in public and private sector
E– strong MIS for reporting, monitoring
Banking
Hy and controlling risks used by the banks 1 39.978 .000 Rejected
Sector
and private sector
E– effective and comprehensive risk
Banking
Hy reporting framework used by the banks 1 24.910 .000 Rejected
Sector
and private sector
E– separate risk management framework for
Banking
Hy independent departments used by the 1 1.055 .000 Rejected
Sector
6 banks are independent of their being in
public and private sector
E– The fraud risk management method
Banking
Hy periodical review and evaluation used by 1 2.553 .110 Accepted
Sector
7
37
the banks are independent of their being
in public and private sector
forensic accountant responses received from 30 respondents of selected banks:
F – Hy 1: The fraud risk management method comprehensive risk measurement approach

used by the banks are independent of their being in public and private sector.
F – Hy 2: The fraud risk management method consistent risk management policies
approved by the board used by the banks are independent of their being in public
and private sector.
F – Hy 3: The fraud risk management method guidelines and other parameters should be
mentioned to govern risk taking used by the banks are independent of their being
in public and private sector.
F – Hy 4: The fraud risk management method strong MIS for reporting, monitoring and
controlling risks used by the banks are independent of their being in public and
private sector.
38
F – Hy 5: The fraud risk management method effective and comprehensive risk reporting
framework used by the banks are independent of their being in public and
private sector.
F – Hy 6: The fraud risk management method separate risk management framework for
independent departments used by the banks are independent of their being in
public and private sector.
F – Hy 7: The fraud risk management method periodical review and evaluation used by
the banks are independent of their being in public and private sector.
Table 7.5 (B)

Testing of Hypothesis: Fraud Risk Management Method used by Banks (Forensic
Accountant)
F – comprehensive risk measurement
Banking
Hy approach used by the banks are 1 0.117 .732 Accepted
Sector
1 independent of their being in public and
private sector
F – consistent risk management policies
Banking
Hy approved by the board used by the banks 1 0.153 .696 Accepted
Sector
and private sector
F – guidelines and other parameters should
Banking
Hy be mentioned to govern risk taking used 1 1.158 .282 Accepted
Sector
3 by the banks are independent of their
being in public and private sector
F – strong MIS for reporting, monitoring
Banking
Hy and controlling risks used by the banks 1 0.026 .873 Accepted
Sector
and private sector
F – effective and comprehensive risk
Banking
Hy reporting framework used by the banks 1 0.153 .696 Accepted
Sector
and private sector
F – The fraud risk management method
Banking
Hy separate risk management framework for 1 0.433 .510 Accepted
Sector
6 independent departments used by the
39
banks are independent of their being in
public and private sector
F–
periodical review and evaluation used by Banking
the banks are independent of their being Sector
7
in public and private sector
significance value is greater than 0.05, the hypothesis F – Hy 1 is accepted.
Table 7.5 (A) and (B), clearly states that the alternative hypothesis “The fraud risk management
methods used by the banks are dependent of their being in public and private sector” is
accepted. The results clearly show that the fraud risk management methods used by public
sector and private sector banks is same.
Hypothesis 6
Null hypothesis (H06): The corporate governance practices on risk management adopted by
banks are independent of their being in public sector and private sector.
Alternative Hypothesis(H16): The corporate governance practices on risk management
adopted by banks are dependent of their being in public sector and private sector.
40
taking banking sector as the variable and responses from bank managers and officers.
E – Hy 1: The corporate governance practice transparency and disclosures of risk

management adopted by banks are independent of their being in public sector
and private sector.
E – Hy 2: The corporate governance practice discipline in operations of risk management
adopted by banks are independent of their being in public sector and private
sector.
E – Hy 3: The corporate governance practice rights and equitable treatment of
shareholders of risk management adopted by banks are independent of their
being in public sector and private sector.
E – Hy 4: The corporate governance practice interests of different stakeholders of risk
and private sector.
E – Hy 5: The corporate governance practice disclosure and straightforwardness of risk
and private sector.
E – Hy 6: The corporate governance practice off-site surveillance of risk management
sector.
E – Hy 7: The corporate governance practice prompt corrective action of risk management
sector.
Table 7.6
Testing of Hypothesis: Corporate Governance Practices on Risk Management adopted
by Banks (Managers and Officers)
No. Sub Hypotheses Variables Degree Chi – Signific Accepted /
of Square ance Rejected
41
E– The corporate governance practice
Hy transparency and disclosures of risk
Banking
1 management adopted by banks are 1 6.122 .013 Rejected
Sector
independent of their being in public
sector and private sector
Hy discipline in operations of risk
Banking
Sector
Hy rights and equitable treatment of
3 shareholders of risk management Banking
1 0.16 .901 Accepted
adopted by banks are independent of Sector
their being in public sector and private
sector
Hy interests of different stakeholders of risk
Banking
Sector
Hy disclosure and straightforwardness of
Banking
5 risk management adopted by banks are 1 14.804 .000 Rejected
Sector
E– The corporate governance practice off-
Hy site surveillance of risk management
Banking
6 adopted by banks are independent of 1 18.215 .000 Rejected
Sector
their being in public sector and private
sector
Hy prompt corrective action of risk
Banking
Sector
value is greater than 0.05, the hypothesis E – Hy 3 is accepted.
42
Table 7.6 clearly states that the null hypothesis “The corporate governance practices on risk
management adopted by banks are independent of their being in public sector and private
sector” is rejected. It can be clearly seen that both the public sector and private sector banks
have adopted similar corporate governance practices for risk management.
Hypothesis 7:
Null hypothesis (H07): The opinion of bank employees in reduction of risk with the help of
forensic accounting is independent of public sector and private sector banks.
Alternative Hypothesis(H17): The opinion of bank employees in reduction of risk with the
help of forensic accounting is dependent of public sector and private sector banks.
The stated hypothesis is tested using One-way ANOVA Test taking banking sector as
the variable and responses from bank managers and officers.
For the purpose of hypothesis testing 7 the following statements are considered from
1. Forensic accounting is used to detect and prevent fraud.

2. Forensic accountant services can prevent identify and reduce occupational risks.
3. Financial fraud can be reduced to minimum level with the use of forensic accounting.
Table 7.7
Summary of the ANOVA Test Value of the Hypothesis 7: Opinion of Bank Employees
in Reduction of Risk with the Help of Forensic Accounting
43
No. Statements Sum of Degree Mean Signific Accepted
Squares of Square ance / Rejected
Freedom Value
1. Forensic accounting is used to 21.333 1 21.333 .001 Rejected
detect and prevent fraud
2. Forensic accountant services 21.870 1 21.870 .000 Rejected
can prevent identify and
reduce occupational risks.
3. Financial fraud can be reduced 48.000 1 48.000 .000 Rejected
to minimum level with the use
of forensic accounting
1. Table 7.7 states that for the given statement when the opinion of bank employees are
evaluated at different banking sectors; the observed value 0.001 is less than the
significance value 0.05, hence the hypothesis is rejected.
Table 7.7 clearly states that the null hypothesis “The opinion of bank employees in reduction
of risk with the help of forensic accounting is independent of public sector and private sector
banks” is rejected. The opinion of bank employees towards reduction of risks with the help of
forensic accounting is similar as majority of the employees are not aware about forensic
accounting and its techniques used for management of risks in banks.
Hypothesis 8:
Null hypothesis (H08): There is no significant difference in the agreement levels of the forensic
accountants on opinion of forensic accounting with respect to their experience.
Alternative Hypothesis(H18): There is a significant difference in the agreement levels of the
forensic accountants on opinion of forensic accounting with respect to their experience.
44
The stated hypothesis is tested using Chi - Square Test, at 5% level of significance,
taking banking sector as the variable and responses from managers and officers.
For the purpose of hypothesis testing 8 the following sub hypothesis are considered from
forensic accountant’s responses received from 30 respondents of selected banks:
F – Hy 1: There is no significant difference in the agreement levels of the forensic

accountants on opinion of Use of forensic accounting in place of financial
accounting may be more effective for the fraud prevention and detection with
respect to their experience.
accountants on opinion of Forensic accountant has accounting skill,
investigative and analytical skills to identify risks as compared to traditional
auditor with respect to their experience.
accountants on opinion of Forensic accounting controls all possible fraud and
mismanagement what traditional audit fails to do with respect to their
experience.
accountants on opinion of Methodology applied in Forensic accounting and
audit are different with respect to their experience.
accountants on opinion of Forensic accountant services can prevent identify and
reduce occupational fraud with respect to their experience.
accountants on opinion of Information technology plays a crucial role in
effective detection and control of financial crimes with respect to their
experience.
accountants on opinion of the appointment of forensic accountant should be
mandatory in banking sector with respect to their experience.
45
accountants on opinion of Management policy should be regularly reviewed by
Forensic accountant with respect to their experience.
accountants on opinion of Integration of forensic accounting will result in quick
detection of financial crimes at initial stage with respect to their experience.
accountants on opinion of integrated forensic accounting system will reduce
corruption and promote FDI & FPI with respect to their experience.
accountants on opinion of Forensic accounting should be introduced at
graduation and post-graduation levels with respect to their experience.
accountants on opinion of financial risk can be reduced to minimum level with
the use of forensic accounting with respect to their experience.
accountants on opinion of Forensic accounting may prove more useful than
financial accounting with respect to their experience.
accountants on opinion of Forensic accounting will prove as an efficient tool of
fraud prevention with respect to their experience.
Table 7.8
Summary of the ANOVA Test Value of the Hypothesis 8: Agreement Levels of the
Forensic Accountants on Opinion of Forensic Accounting
No. Statements Sum of Degree Mean Signifi Accepted
Squares of Square cance /
Freedom Value Rejected
F– There is no significant difference in the 4.438 2 2.219 .280 Accepted
Hy agreement levels of the forensic
1 accountants on opinion of Use of
forensic accounting in place of financial
accounting may be more effective for
the fraud prevention and detection with
46
F– There is no significant difference in the 1.752 2 .876 .455 Accepted
2 accountants on opinion of Forensic
accountant has accounting skill,
investigative and analytical skills to
identify risks as compared to traditional
auditor with respect to their experience
F– There is no significant difference in the .533 2 .267 .747 Accepted
accounting controls all possible fraud
and mismanagement what traditional
audit fails to do with respect to their
experience
F– There is no significant difference in the 1.067 2 .533 .151 Accepted
4 accountants on opinion of Methodology
applied in Forensic accounting and audit
are different with respect to their
experience.
accountant services can prevent identify
and reduce occupational fraud with
F– There is no significant difference in the 5.838 2 2.919 .043 Rejected
6 accountants on opinion of Information
technology plays a crucial role in
effective detection and control of
financial crimes with respect to their
experience
F– There is no significant difference in the 5.276 2 2.638 .041 Rejected
7 accountants on opinion of the
appointment of forensic accountant
should be mandatory in banking sector
with respect to their experience.
8 accountants on opinion of Management
policy should be regularly reviewed by
Forensic accountant with respect to their
experience
9 accountants on opinion of Integration of
forensic accounting will result in quick
47
detection of financial crimes at initial
stage with respect to their experience
F – There is no significant difference in the 10.210 2 5.105 .001 Rejected
10 accountants on opinion of integrated
forensic accounting system will reduce
corruption and promote FDI & FPI with
respect to their experience
F – There is no significant difference in the 2.419 2 1.210 .223 Accepted
accounting should be introduced at
graduation and post-graduation levels
with respect to their experience
12 accountants on opinion of financial risk
can be reduced to minimum level with
the use of forensic accounting with
respect to their experience
F – There is no significant difference in the 1.010 2 .505 .629 Accepted
accounting may prove more useful than
financial accounting with respect to
their experience
accounting will prove as an efficient
tool of fraud prevention with respect to
their experience
1. Table 7.8 states that when the agreement levels of the forensic accountants are evaluated
according to their experience; the observed value 0.280 is greater than the significance
value 0.05, hence the hypothesis F – Hy 1 is accepted.
48
according to their experience; the observed value 0.043 is less than the significance value
0.05, hence the hypothesis F – Hy 6 is rejected.
49
Table 7.8 clearly states that the hypothesis “There is no significant difference in the agreement
levels of the forensic accountants on opinion of forensic accounting with respect to their
experience” is accepted. The opinion of forensic accountants towards forensic accounting does
not differ with respect to their experience.
Hypothesis 9:
Null hypothesis (H09): Forensic accounting techniques used for management of risks has no
significant effect in reduction and prevention of risk as compared to auditing.
Alternative Hypothesis(H19): Forensic accounting techniques used for management of risks
has significant effect in reduction and prevention of risk as compared to auditing.
The stated hypothesis is tested using One-way ANOVA Test taking banking sector as
the variable and responses from bank managers and officers.
For the purpose of hypothesis testing 9 the following statements are considered from
1. Forensic accountant has accounting skill, investigative and analytical skills to identify
risks as compared to traditional auditor.
2. Forensic accounting controls all possible fraud and mismanagement what traditional audit
fails to do.
3. Methodology applied in Forensic accounting and audit are different.
Table 7.9
Summary of the ANOVA Test Value of the Hypothesis 9: Forensic Accounting
Techniques Used For Management of Risks
No. Statements Sum of Df Mean Sig. Accepted
Squares Square / Rejected
1 Forensic accountant has accounting
skill, investigative and analytical skills
to identify risks as compared to 33.333 1 33.333 .000 Rejected
traditional auditor
2 Forensic accounting controls all
possible fraud and mismanagement 200.083 1 200.083 .000 Rejected
what traditional audit fails to do
3 Methodology applied in Forensic
accounting and audit are different 125.453 1 125.453 .000 Rejected
50
1. Table 7.9 states that for the given statement when the forensic accounting techniques used
for management of risks are evaluated with auditing; the observed value 0.000 is less than
the significance value 0.05, hence the hypothesis is rejected.
Table 7.9 clearly states that the null hypothesis “Forensic accounting techniques used for
management of risks has no significant effect in reduction and prevention of risk as compared
to auditing” is rejected. The results show that forensic accounting techniques which are used
for management of risk have an effect in reduction and prevention of risks as compared to
auditing.
8. Findings of the Study based on Hypotheses

After data analysis and interpretation the researcher needs to write findings and
conclusions. The research findings should be consistent and factual. The researcher has
made an attempt to draw out some findings based on hypotheses.
Findings of the Study – I (Customers)

Findings on Demographic Profile of Customers
1. 33.8 percent of the respondents belongs to the age group of 18 – 30, 37.5 percent
belong to the age group of 31 – 40, 19.2 percent belong to the age group of 41 – 50, 7
percent belong to 51 – 60 and 2.5 percent belong to the age group of 60 and above.
2. It was founded that 31.5 percent respondents are male and 68.5 percent are females.
3. 33 percent of the respondents belong to the below 20,000 income group, 29 percent
belong to 20,001 – 40,000, 14.2 percent belong to 41,000 – 60,000, 9 percent belong
to 60,001 – 80, 000, 4.5 percent belong to 80,001 – 1,00,000 and 10.2 percent belong
to 1,00,001 and above income group.
51
4. It was founded that 1.5 percent of the respondents education was below SSC and SSC,
21.2 percent were HSC, 38.2 percent were Graduate, 36.8 percent were Post Graduate
and only 0.8 percent of the respondents had done other education.
5. 25 percent of the respondents are from State Bank of India, 25 percent from Bank of
Baroda, 25 percent from Yes Bank and 25 percent from HDFC Bank.
Findings based on Hypothesis: The level of awareness of stakeholders of forensic
accounting techniques used for management of risks in banks.
6. It was found that 68.5 percent of the respondents are aware about frauds and 31.5
percent of the respondents are not aware about the frauds.
7. It was found that 31.8 percent of the respondents were aware about forensic accounting
and 68.2 percent of the respondents were not aware about forensic accounting.
8. It was found that 32.2 percent of the respondents were aware of techniques used by
banks for managing risks and 67.8 percent were not aware.
9. It was found that out of 400 respondents highest i.e. 225 respondents were not aware
about the new guidelines introduced by RBI to reduced fraud, 80 respondents were
aware about the guideline E – mandate for Recurring Transactions, 74 respondents
were aware about the guideline Online Dispute Resolution System, 73 respondents
were aware about Positive Pay Mechanism for cheques and 54 respondents were aware
about Relaxation in Contactless Payments.
Findings based on Hypothesis: Customer education on fraud risks and preventive
measures adopted for risk management.
10. It was found that 54.5 percent of the respondents were informed by their banks about
types of frauds a customer can come across and 45.5 percent of the respondents were
not informed.
11. It was found that 56 percent of the respondents were informed by their banks about
preventive measures to be taken to avoid frauds and 44 percent were not informed.
12. It was found that out of 400 respondent’s highest i.e. 308 respondents were informed
about the safety tip to keep your PIN and passwords secret, 270 respondents were
informed about the safety tip do not give out account info over the phone or email, 214
respondents were informed about the safety tip use a strong password for online
banking & Change passwords periodically, 181 respondents were informed about the
safety tip check your account activity regularly, 129 respondents were informed about
the safety tip be aware of your surroundings at ATMs, 118 respondents were informed
about the safety tip report lost cards immediately, 116 respondents were informed
52
about the safety tip don’t click links embedded in emails, 106 respondents were
informed about the safety tip don’t use public computers for online banking & Check
for secure connections, 98 respondents were informed about the safety tip registration
of Mobile number/ Change of Mobile number, 55 respondents were informed about
the safety tip minimize check writing & if you write, Write checks in permanent blue
ink, Do not leave blank space on your check, Make sure checks can’t be seen through
envelopes etc., 51 respondents were informed about the safety tip use anti-virus
protection software, firewalls and spyware blockers and 20 respondents were informed
about the safety tip use secure mailboxes only.
Findings based on Hypothesis: Agreement levels of the customers on opinion of
13. It was found that 3.8 percent of the respondents strongly disagreed that Forensic
Accounting is a Merger of Forensic Science and Accounting, 5.2 percent disagreed,
whereas 28 percent were neutral with their opinion, 35 percent of the respondents
agreed, 13.5 percent strongly agreed and 14.5 percent said that they don’t know about
this.
14. It was found that 8 percent of the respondents strongly disagreed that Forensic
Accounting provides Litigation Support, 7.8 percent disagreed, whereas 31.3 percent
were neutral with their opinion, 31.5 percent of the respondents agreed, 9.2 percent
strongly agreed and 12.2 percent said that they don’t know about this.
Accounting is used to Detect and Prevent Fraud, 7.5 percent disagreed, whereas 26.2
percent were neutral with their opinion, 36.7 percent of the respondents agreed, 12.8
percent strongly agreed and 12.8 percent said that they don’t know about this.
16. It was found that 4.5 percent of the respondents strongly disagreed that Use of Forensic
Accounting may be more effective, 10 percent disagreed, whereas 34 percent were
neutral with their opinion, 27.5 percent of the respondents agreed, 8 percent strongly
agreed and 16 percent said that they don’t know about this.
17. It was found that 8.5 percent of the respondents strongly disagreed that Knowledge of
Forensic Accounting strengthens Fraud Control, 5 percent disagreed, whereas 30
percent were neutral with their opinion, 32 percent of the respondents agreed, 11
percent strongly agreed and 13.5 percent said that they don’t know about this.
18. It was found that 8 percent of the respondents strongly disagreed that Financial Fraud
can be reduced with the use of Forensic Accounting, 6.8 percent disagreed, whereas
53
26.8 percent were neutral with their opinion, 36.2 percent of the respondents agreed,
8.5 percent strongly agreed and 13.7 percent said that they don’t know about this.
Accounting may prove useful than Financial Accounting, 8.8 percent disagreed,
whereas 36 percent were neutral with their opinion, 27.7 percent of the respondents
agreed, 8.8 percent strongly agreed and 13.7 percent said that they don’t know about
this.
20. It was found that 6.3 percent of the respondents strongly disagreed that Forensic
Accounting will prove as an Effective Tool, 9 percent disagreed, whereas 33.2 percent
were neutral with their opinion, 28.2 percent of the respondents agreed, 10 percent
strongly agreed and 13.3 percent said that they don’t know about this.
Findings of the Study – II (Bank Managers and Officers)

Findings on Demographic Profile of Bank Managers and Officers
1. 27.7 percent of the respondents belongs to the age group of 18 – 30, 49.3 percent belong
to the age group of 31 – 40, 2.7 percent belong to the age group of 41 – 50, 20.3 percent
belong to 51 – 60 and zero percent belong to the age group of 60 and above.
3. 0.3 percent of the respondents belong to the below 20,000 income group, 30.7 percent
belong to 20,001 – 40,000, 11 percent belong to 41,000 – 60,000, 1.7 percent belong to
60,001 – 80, 000, 56.3 percent belong to 80,001 – 1,00,000 and 0.3 percent belong to
1,00,001 and above income group.
4. 40 percent of the respondents are Managers, 40 percent are Assistant Managers and 20
percent are officers.
5. It was found that 10.7 percent of the respondents had 1 – 3 years’ experience, 17.3
percent of the respondents had 4 – 6 years’ experience and 72 percent of the respondents
had 7 years and above experience.
Findings based on Hypothesis: The level of awareness of stakeholders of forensic
6. It was found that 47.33 percent of the respondents were aware about forensic
accounting and 52.67 percent of the respondents were not aware.
7. It was found that out of 300 respondents highest i.e. 155 respondents were not aware
about any of the forensic accounting techniques, 102 respondents were aware about
Data Mining forensic accounting technique, 85 respondents were aware about Ratio
54
Analysis forensic accounting technique, 81 respondents were aware about Data
Matching forensic accounting technique, 66 respondents were aware about Computer
Assisted Review (CAR) forensic accounting technique, 20 respondents were aware
about Benford’s Law forensic accounting technique, respondents were aware about
Benford’s Law forensic accounting technique, 20 respondents were aware about Outlier
Detection forensic accounting technique, 2 respondents were aware about forensic
accounting technique, 1 respondents were aware about Theory of Relative Size Factor
(RSF) forensic accounting technique, 1 respondents were aware about Genogram &
Timelines Analysis forensic accounting technique, 0 respondents were aware about
Same, Same, Different forensic accounting technique.
8. 95 percent of the respondents are aware about the techniques used by banks for
managing risks and 5 percent of the respondents were not aware.
9. 99.67 percent of the respondents are aware about Basel guidelines and 0.33 percent of
the respondents are not aware.
10. 99.67 percent of the respondents are aware about RBI guidelines for corporate
governance and 0.33 percent of the respondents are not aware.
Findings based on Hypothesis: The actual use of risk management mechanisms, and
the perceived level of effectiveness.
11. It was found that out of 300 respondents highest i.e. 280 respondents agreed that Staff
Rotation Policy is an effective mechanism for fraud detection and prevention, 258
respondents agreed that Red Flag is an effective mechanism for fraud detection and
prevention, 247 respondents agreed that Data Base Management system with controls
is an effective mechanism for fraud detection and prevention, 238 respondents agreed
that Digital analysis software is an effective mechanism for fraud detection and
prevention, 237 respondents agreed that Internal Audit is an effective mechanism for
fraud detection and prevention, 188 respondents agreed that Surveillance equipment is
an effective mechanism for fraud detection and prevention, 174 respondents agreed that
Reconciliation of Statements is an effective mechanism for fraud detection and
prevention, 173 respondents agreed that Corporate Governance is an effective
mechanism for fraud detection and prevention, 166 respondents agreed that Fraud
Hotline is an effective mechanism for fraud detection and prevention, 157 respondents
agreed that Computer Assisted Audit Tools (CAATs) is an effective mechanism for
fraud detection and prevention, 69 respondents agreed that Other mechanism are
effective mechanism for fraud detection and prevention.
55
Findings based on Hypothesis: The fraud risk management methods used by the
banks.
12. It was found that out of 300 respondents highest i.e. 277 respondents agreed that
effective and comprehensive risk reporting framework method should be adopted by
banks for managing fraud risk, 258 respondents agreed that strong MIS for reporting,
monitoring and controlling risks method should be adopted by banks for managing
fraud risk, 241 respondents agreed that Periodical review and evaluation method should
be adopted by banks for managing fraud risk, 237 respondents agreed that
comprehensive risk measurement approach method should be adopted by banks for
managing fraud risk, 229 respondents agreed that consistent risk management policies
approved by the Board method should be adopted by banks for managing fraud risk,
219 respondents agreed that separate risk management framework for independent
departments method should be adopted by banks for managing fraud risk and 216
respondents agreed that guidelines and other parameters should be mentioned to govern
risk taking method should be adopted by banks for managing fraud risk.
Findings based on Hypothesis: The corporate governance practices on risk
management adopted by banks.
13. It was found that out of 300 respondents highest i.e. 295 respondents agreed that
corporate governance practice transparency and disclosures of risk management are
adopted by banks, 257 respondents agreed that corporate governance practice discipline
in operations of risk management are adopted by banks, 253 respondents agreed that
corporate governance practice prompt corrective action of risk management are adopted
by banks, 243 respondents agreed that corporate governance practice off-site
surveillance of risk management are adopted by banks, 208 respondents agreed that
corporate governance practice rights and equitable treatment of shareholders of risk
management are adopted by banks, 206 respondents agreed that corporate governance
practice disclosure and straightforwardness of risk management are adopted by banks
and 201 respondents agreed that corporate governance practice interests of different
stakeholders of risk management are adopted by banks.
Findings based on Hypothesis: Opinion of bank employees in reduction of risk with
the help of forensic accounting.
14. It was found that 0 percent of the respondents strongly disagreed that forensic
accounting is used to detect and prevent fraud, 0 percent of the respondents disagreed,
56
7 percent respondents were neutral, 35.67 percent of the respondents agreed, 10.33
percent strongly agreed and 47 percent of the respondents don’t know about this.
accountant services reduces occupational risks, 0.33 percent of the respondents
disagreed, 1.67 percent respondents were neutral, 37 percent of the respondents agreed,
9.33 percent strongly agreed and 51.67 percent of the respondents don’t know about
this.
16. It was found that 0 percent of the respondents strongly disagreed that financial fraud
can be reduced with the use of forensic accounting, 0 percent of the respondents
disagreed, 31.33 percent respondents were neutral, 7.67 percent of the respondents
agreed, 9.33 percent strongly agreed and 51.67 percent of the respondents don’t know
about this.
Findings based on Hypothesis: Forensic accounting techniques used for management
of risks for reduction and prevention of risk as compared to auditing.
accountant has more skills than an auditor, 0 percent of the respondents disagreed, 3
percent respondents were neutral, 30.33 percent of the respondents agreed, 15 percent
strongly agreed and 51.67 percent of the respondents don’t know about this.
accounting controls frauds as compared to audit, 13 percent of the respondents
disagreed, 0.33 percent respondents were neutral, 19 percent of the respondents agreed,
5.34 percent strongly agreed and 62.33 percent of the respondents don’t know about
this.
19. It was found that 0.33 percent of the respondents strongly disagreed that methodology
of forensic accounting and auditing is different, 0 percent of the respondents disagreed,
7 percent respondents were neutral, 24.33 percent of the respondents agreed, 5.34
percent strongly agreed and 63 percent of the respondents don’t know about this.
Findings of the Study – III (Forensic Accountants)

Findings based on Demographic Profile of Forensic Accountants
1. 43.34 percent of the respondents belongs to the age group of 18 – 30, 33.33 percent belong
to the age group of 31 – 40, 23.33 percent belong to the age group of 41 – 50, zero percent
belong to 51 – 60 and zero percent belong to the age group of 60 and above.
57
3. It was found that 6.67 percent of the respondents education was graduation, 20 percent
were post graduates, 70 percent were CA’s, 3.33 percent had done CS, zero percent were
ICWA and zero percent had done other studies.
4. It was found that 33.33 percent of the respondents had 1 – 3 years’ experience, 20 percent
of the respondents had 4 – 6 years’ experience and 46.67 percent of the respondents had 7
years and above experience.
Findings based on Hypothesis: Fraud risk management methods used by the banks.
5. It was found that out of 30 respondents highest i.e. 27 respondents agreed that Periodical
review and evaluation method should be adopted by banks for managing fraud risk, 21
respondents agreed that strong MIS for reporting, monitoring and controlling risks method
should be adopted by banks for managing fraud risk, 16 respondents agreed that guidelines
and other parameters should be mentioned to govern risk taking method should be adopted
by banks for managing fraud risk, 16 respondents agreed that comprehensive risk
measurement approach method should be adopted by banks for managing fraud risk, 16
respondents agreed that consistent risk management policies approved by the Board
method should be adopted by banks for managing fraud risk, 14 respondents agreed that
se effective and comprehensive risk reporting framework method should be adopted by
banks for managing fraud risk and 11 respondents agreed that separate risk management
framework for independent departments method should be adopted by banks for managing
fraud risk.
Findings based on Hypothesis: Agreement levels of the forensic accountants on opinion

of forensic accounting with respect to their experience.
6. It was found that 13.33 percent of the respondents strongly disagreed that use of forensic
accounting may be more effective, 0 percent of the respondents disagreed, 16.7 percent
respondents were neutral, 36.7 percent of the respondents agreed and 33.3 percent strongly
agreed.
7. It was found that 6.7 percent of the respondents strongly disagreed that forensic accountant
has more skills than an auditor, 0 percent of the respondents disagreed, 13.3 percent
respondents were neutral, 50 percent of the respondents agreed and 30 percent strongly
agreed.
8. It was found that 6.7 percent of the respondents strongly disagreed that forensic accounting
controls frauds as compared to audit, 0 percent of the respondents disagreed, 26.7 percent
58
respondents were neutral, 56.6 percent of the respondents agreed and 10 percent strongly
agreed.
9. It was found that 0 percent of the respondents strongly disagreed that methodology of
forensic accounting and auditing is different, 0 percent of the respondents disagreed, 23.3
percent respondents were neutral, 70 percent of the respondents agreed and 6.7 percent
strongly agreed.
10. It was found that 13.3 percent of the respondents strongly disagreed that forensic
accountant services reduces occupational risks, 0 percent of the respondents disagreed, 6.7
percent respondents were neutral, 80 percent of the respondents agreed and 0 percent
strongly agreed.
11. It was found that 6.7 percent of the respondents strongly disagreed that information
technology plays a crucial role in detection of financial crimes, 0 percent of the
respondents disagreed, 6.7 percent respondents were neutral, 60 percent of the respondents
agreed and 26.6 percent strongly agreed.
12. It was found that 6.7 percent of the respondents strongly disagreed that appointment of
forensic accountant should be mandatory, 0 percent of the respondents disagreed, 26.6
percent respondents were neutral, 56.7 percent of the respondents agreed and 10 percent
strongly agreed.
13. It was found that 13.3 percent of the respondents strongly disagreed that management
policy should be reviewed by forensic accountant, 0 percent of the respondents disagreed,
16.6 percent respondents were neutral, 63.3 percent of the respondents agreed and 6.7
percent strongly agreed.
14. It was found that 6.7 percent of the respondents strongly disagreed integration of forensic
accounting will result in quick detection of financial crimes, 0 percent of the respondents
disagreed, 23.3 percent respondents were neutral, 56.7 percent of the respondents agreed
and 13.3 percent strongly agreed.
15. It was found that 6.7 percent of the respondents strongly disagreed integrated of forensic
accounting will reduce corruption, 0 percent of the respondents disagreed, 40 percent
respondents were neutral, 43.3 percent of the respondents agreed and 10 percent strongly
agreed.
16. It was found that 6.7 percent of the respondents strongly disagreed forensic accounting
should be introduced at graduate and post graduate level, 0 percent of the respondents
disagreed, 23.3 percent respondents were neutral, 63.3 percent of the respondents agreed
and 6.7 percent strongly agreed.
59
17. It was found that 6.7 percent of the respondents strongly disagreed financial risk can be
reduced with the use of forensic accounting, 13.3 percent of the respondents disagreed, 20
percent respondents were neutral, 56.7 percent of the respondents agreed and 3.3 percent
strongly agreed.
may prove useful than financial accounting, 6.7 percent of the respondents disagreed, 33.3
percent respondents were neutral, 40 percent of the respondents agreed and 6.7 percent
strongly agreed.
will prove as an effective tool, 6.7 percent of the respondents disagreed, 16.7 percent
respondents were neutral, 56.6 percent of the respondents agreed and 6.7 percent strongly
agreed.
9. Conclusions of the Study based on Hypotheses

The researcher has interpreted the findings based on hypotheses by concluding
the statements.
Conclusions of the Study – I (Customers)
After findings, the researcher interpreted the findings by concluding the
following:
Conclusions on Demographic Profile of Customers
1. Majority of the respondents i.e. 37.5 belong to the age group of 31 – 40 and only 2.5
percent belong to the age group of 60 and above. It clearly shows that the younger
age group people are mainly involve in banking activities and the elder age group are
less involved.
2. Majority of the respondents i.e. 68.5 percent are females which clearly states that
more females are engaged in banking activities.
3. Majority of the respondents i.e. 33 percent belong to the below 20,000 income group
and only 4.5 percent belong to the income group of 80,000 – 1, 00,000.
4. Majority of the respondents i.e. 38.2 percent were graduates and 36.8 percent were
post graduates. Education plays a very important role in changing the perceptions of
people.
5. The respondents were equally distributed as 25 percent from each of the selected
banks.
60
Conclusions based on Hypothesis: The level of awareness of stakeholders of forensic
6. Majority i.e. 68.5 percent of the respondents are aware about the frauds in the banking
industry.
7. Majority i.e. 68.2 percent of the respondents are not aware about forensic accounting.
Awareness needs to be created about forensic accounting.
8. Majority i.e. 67.8 percent of the respondents were not aware about the techniques
used by banks for managing risks.
9. Majority i.e. 225 respondents were not aware about aby of the new guidelines
introduced by RBI to reduce frauds.
Conclusions based on Hypothesis: Customer education on fraud risks and preventive
measures adopted for risk management.
10. Majority i.e. 54.5 percent of the respondents were informed by their banks about types
of frauds a customer can come across. But yet 45.5 percent of the respondents have
to be informed.
11. Majority i.e. 56 percent of the respondents were informed by their banks about
preventive measures to be taken to avoid frauds.
12. Majority i.e. 308 respondents were informed about the safety tip to keep your PIN
and passwords secret and 270 respondents were informed about the safety tip do not
give out account info over the phone or email.
Conclusions based on Hypothesis: Agreement levels of the customers on opinion of
13. Majority i.e. 35 percent of the respondents agreed that forensic Accounting is a Merger
of Forensic Science and Accounting.
14. Majority i.e. 31.5 percent of the respondents agreed that Forensic Accounting provides
Litigation Support.
15. Majority i.e. 36.7 percent of the respondents agreed that Forensic Accounting is used
to Detect and Prevent Fraud.
16. Majority i.e. 34 percent of the respondents were neutral with their opinion towards use
of Forensic Accounting may be more effective.
17. Majority i.e. 32 percent of the respondents agreed that Knowledge of Forensic
Accounting strengthens Fraud Control.
18. Majority i.e. 36.2 percent of the respondents agreed that Financial Fraud can be reduced
with the use of Forensic Accounting
61
19. Majority i.e. 36 percent of the respondents were neutral with their opinion towards
Forensic Accounting may prove useful than Financial Accounting.
20. Majority i.e. 33.2 percent of the respondents were neutral with their opinion towards
Forensic Accounting will prove as an Effective Tool.
Conclusions of the Study – II (Bank Managers and Officers)
After findings, the researcher interpreted the findings by concluding the following:
Conclusions based on Demographic Profile of Bank Managers and Officers

1. Majority of the respondents i.e. 49.3 belong to the age group of 31 – 40 and only 2.7
percent belong to the age group of 41 – 50. It clearly shows that the younger age
group people are mainly employed and the elder age group are less.
2. Majority of the respondents i.e. 63.3 percent are males which clearly states that more
males are employed at managerial level.
3. Majority of the respondents i.e. 56.3 percent belong to the income group of 80,000 –
1, 00,000.
4. Majority of the respondents i.e. 40 percent are managers and assistant managers.
5. Majority i.e. 72 percent of the respondents had 7 years and above experience. It
clearly shows that experienced people are employed at higher level.
Conclusions based on Hypothesis: The level of awareness of stakeholders of forensic
6. Majority i.e. 52.67 percent of the respondents were not aware about forensic
accounting. Every employee of the bank must be aware about forensic accounting so
that they can identify and reduce frauds.
7. Majority i.e. 155 respondents were not aware about any of the forensic accounting
techniques.
8. Majority i.e. 95 percent of the respondents were aware about the techniques used by
banks for managing risks.
9. Majority i.e. 99.67 percent of the respondents were aware about Basel guidelines.
10. Majority i.e. 99.67 percent of the respondents were aware about RBI guidelines for
corporate governance.
Conclusions based on Hypothesis: The actual use of risk management mechanisms,
and the perceived level of effectiveness.
62
11. Majority i.e. 280 respondents agreed that Staff Rotation Policy is an effective
mechanism for fraud detection and prevention
Conclusions based on Hypothesis: The fraud risk management methods used by the
banks.
12. Majority i.e. 277 respondents agreed that effective and comprehensive risk reporting
framework method should be adopted by banks for managing fraud risk.
Conclusions based on Hypothesis: The corporate governance practices on risk
management adopted by banks.
13. Majority i.e. 295 respondents agreed that corporate governance practice transparency
and disclosures of risk management are be adopted by banks.
Conclusions based on Hypothesis: Opinion of bank employees in reduction of risk
with the help of forensic accounting.
14. Majority i.e. 47 percent of the respondents don’t know about forensic accounting is
used to detect and prevent fraud.
15. Majority i.e. 51.67 percent of the respondents don’t know about forensic accountant
services will reduce occupational risks.
16. Majority i.e. 51.67 percent of the respondents don’t know that financial fraud can be
reduced with the use of forensic accounting.
Conclusions based on Hypothesis: Forensic accounting techniques used for management
of risks for reduction and prevention of risk as compared to auditing.
17. Majority i.e. 51.67 percent of the respondents don’t know that forensic accountant has
more skills than an auditor.
18. Majority i.e. 62.33 percent of the respondents don’t know that forensic accounting
controls frauds as compared to audit.
19. Majority i.e. 63 percent of the respondents don’t know that methodology of forensic
accounting and auditing is different.
Conclusions of the Study – III (Forensic Accountants)
After findings, the researcher interpreted the findings by concluding the following:
Conclusions based on Demographic Profile of Forensic Accountants
63
1. Majority i.e. 43.34 percent of the respondents belong to the age group of 18 – 30 and
zero percent belong to the age group of 51 – 60 and 60 and above. It clearly shows
that elder age group respondents are not engaged in providing forensic accounting
services.
2. Majority of the respondents i.e. 63.3 percent are males which clearly states that more
males are employed as forensic accountants.
3. Majority i.e. 70 percent of the respondents were CA’s which clearly states that
chattered accountant degree is required to become a forensic accountant.
4. Majority i.e. 46.67 percent of the respondents had 7 years and above experience. It
clearly shows that experienced people are employed as forensic accountants.
Conclusions based on Hypothesis: Fraud risk management methods used by the

banks.
5. Majority i.e. 27 respondents agreed that Periodical review and evaluation method
should be adopted by banks for managing fraud risk.
Conclusions based on Hypothesis: Agreement levels of the forensic accountants on

opinion of forensic accounting with respect to their experience.
6. Majority i.e. 36.7 percent of the respondents agreed that the use of forensic accounting
may be more effective.
7. Majority i.e. 50 percent of the respondents agreed that forensic accountant has more
skills than an auditor.
8. Majority i.e. 56.6 percent of the respondents agreed that forensic accounting controls
frauds as compared to audit.
9. Majority i.e. 70 percent of the respondents agreed that methodology of forensic
accounting and auditing is different.
10. Majority i.e. 80 percent of the respondents agreed that forensic accountant services
reduces occupational risks.
11. Majority i.e. 60 percent of the respondents agreed that information technology plays a
crucial role in detection of financial crimes.
12. Majority i.e. 56.7 percent of the respondents agreed that appointment of forensic
accountant should be mandatory.
13. Majority i.e. 63.3 percent of the respondents agreed that management policy should be
reviewed by forensic accountant.
64
14. Majority i.e. 56.7 percent of the respondents agreed that integration of forensic
accounting will result in quick detection of financial crimes.
15. Majority i.e. 43.3 percent of the respondents agreed that integrated of forensic
accounting will reduce corruption.
16. Majority i.e. 63.3 percent of the respondents agreed that forensic accounting should be
introduced at graduate and post graduate level.
17. Majority i.e. 56.7 percent of the respondents agreed that financial risk can be reduced
with the use of forensic accounting.
18. Majority i.e. 40 percent of the respondents agreed that forensic accounting may prove
useful than financial accounting.
19. Majority i.e. 56.6 percent of the respondents agreed that forensic accounting will prove
as an effective tool.
10. Limitations of the Study

The limitations of the study are as follows:
1. From Mumbai only Mumbai District and Mumbai Suburban District is selected as the
geographical area for research.
2. Only public sector and private sector banks are selected and co-operative banks,
schedule banks, foreign banks are not selected.
3. Out of 20 Public Sector Banks and 22 Private Sector Banks 2 banks from each category
is selected.
4. Out of 698 bank branches operating in Mumbai, from 2 public and 2 private sector
banks only 120 branches are selected.
5. Only 30 branch locations are selected from the Mumbai Region viz. Colaba, Nariman
Point, Churchgate, Charni Road, Worli, Dadar, Prabhadevi, Matunga, Sion, Kurla,
Ghatkopar, Mulund, Bhandup, Chembur, Wadala, Borivali, Santacruz, Bandra, Vile
Parle, Andheri West, Andheri East, Goregaon, Kandivali, Jogeshwari, Malad,
Vikhroli, Grant Road, Kala Nagar, Jacob Circle and Mahalaxmi.
6. Only 4 bank employees and 5 customers from each branch are selected as respondents
from the 4 selected banks.
7. The study is focusing only on forensic accounting and risk management in banks other
industries are ignored.
8. The period covered for information is from 2009 – 2010 to 2019 – 2020.
65
11. Chapter Outline
The research is presented in number of chapters and the chapters of this research are as
follows:
1. Introduction
This chapter is an introduction to the entire research work. It introduces in a systematic
manner the entire framework within which the study is conducted. The chapter provides
with the background of the study and the various aspects of forensic accounting and
risk management. The chapter also provides a brief review on the significance,
objectives, problem statement, hypothesis of the study, and the research methodology
adopted by the researcher. The limitations of the study are also highlighted followed by
expected contribution, scope of the further research and the chapter scheme.
2. Review of Literature of the Study

The chapter has covered a summary of 100 literature related to the study collected from
books, journals, newspapers, theses, electronic delivered information. The reviews
include 7 books, 73 journal articles and 20 newspaper articles. The articles are related
to forensic accounting, frauds in banking sector, risk management, risk assessment etc.
3. Conceptual Framework of the Study

This chapter intends to explain the various concepts and terms used in the research
study. The researcher has attempted to present various concepts like forensic, forensic
accounting, litigation support, fraud, types of fraud, fraud triangle, fraud tree, risk, types
of risk, risk management and other concepts related to forensic accounting and risk
management are explained in detail. The researcher has covered total 31 concepts
related to forensic accounting and risk management.
4. An Overview of Forensic Accounting

Since the core area of the study is forensic accounting the researcher has made an
attempt to thoroughly understand the aspects of forensic accounting to evaluate the
scope of the study. The chapter deals with understanding the characteristics of forensic
accounting as well as the different procedures used by forensic accountant. The reason
for audit failure to identify frauds has also been studied.
66
5. Techniques of Forensic Accounting and Risk Management
The chapter initially highlights the general techniques of forensic accounting used by
the forensic accountants like Computer Assisted Reviews (CAR), Data Mining, Data
Matching, Trending, Ratio Analysis etc. The researcher has also studied about the
techniques of risk management like Decision Tree Diagram, Fishbone Diagram, SWOT
Analysis, Process Maps etc. This chapter also initiates to understand the techniques of
forensic accounting and risk management used by banks which includes techniques like
Computer Assisted Reviews (CAR), Data Mining, Data Matching, Trending, Ratio
Analysis, MIS system, Credit Rating, Risk Pricing, Prudential Limits etc.
6. Profile of Banks
In this chapter the researcher has discussed the profile of the selected banks which are
State Bank of India, Bank of Baroda, Yes Bank and HDFC Bank. For the purpose of
the study the researcher has selected 2 public sector banks and 2 private sector banks.
To understand the financial position status of all the banks it is important to study the
profile of each bank in detail which will includes the banks establishment details,
products and services provided by the banks and trend analysis for 10 years. To
understand the fraud instances in banks the researcher has also studied the trend of NPA
over 10 years.
7. Data Analysis and Interpretations

This chapter is based on primary data collection, therefore this chapter is divided in
three sub chapters as there are three different questionnaires. The first chapter includes
the data analysis and interpretations of the responses collected from the 400 customers
of the selected banks. The second chapter includes the data analysis and interpretations
of the responses collected from 300 bank employees of the selected banks. And the
third chapter includes the data analysis and interpretations of the responses collected
from 30 forensic accountants of the selected banks.
8. Findings and Conclusions

After data analysis and interpretation the researcher needs to write findings and
conclusions. The research findings should be consistent and factual. Findings are
statements of actual facts and figures based on the information collected and done with
the help of data analysis. This chapter presents findings and conclusions of the research
67
after analysis of the information gathered with the help of a questionnaire and
statistically analyzed and interpreted in the previous chapters. In this chapter the
researcher has made an attempt to draw out some findings based on the analysis.
9. Suggestions and Recommendations

Suggestion refers to the psychological process by which one person guides the thoughts,
feelings, or behaviour of another. In general suggestion refers to the idea or plans put
for considerations. After finding and drawing conclusions, the researcher has tried to
point out some plans or ideas which can help the stakeholders to prevent the risk of
fraud. Hence, in this section the researcher has given some suggestions and
recommendations to the stakeholders and policymakers to detect and prevent fraud risk.
12. Future Research

Forensic accounting is an emerging area of specialization and development of forensic
accounting in Indian organizations is at its infancy stage. The researcher has studied on
forensic accounting and risk management in banking sector so there is a future scope for
research to study the same with other industries. The study can also be conducted on
examining the components of forensic accounting skills for assessment of fraud risk. The
applicability of forensic accounting as an effective tool in other industries other than
banking sector can also be focused.
13. References
Books
1. Dutta S. K. (2013). Statistical Techniques for Forensic Accounting Understanding the
Theory and Application of Data Analysis, New Jersey, FT Press.
2. Silverstone H, Sheetz M, Pedneault S and Rudewicz F (2012). Forensic Accounting
and Fraud Investigation for Non-Experts (3rd ed.), New Jersey, John Wiley & Sons,
Inc.
3. Singleton T and Singleton A (2010). Fraud Auditing and Forensic Accounting (4th ed.),
New Jersey, John Wiley & Sons, Inc.
4. Nigrini M. J. (2011). Forensic Analytics Methods and Techniques for Forensic
Accounting Investigations, New Jersey, John Wiley & Sons, Inc.
5. Nigrini M. J. (2012). Benford’s Law Applications for Forensic Accounting, Auditing,
and Fraud Detection, New Jersey, John Wiley & Sons, Inc.
6. Pedneault S. (2009). Fraud 101 Techniques and Strategies for Understanding Fraud
(3rd ed.), New Jersey, John Wiley & Sons, Inc.
68
7. Pickett K. H. S. (2005). Auditing the Risk Management Process, New Jersey, John
Wiley & Sons, Inc.
Articles
1. Owojori. A and Asaolu. T (2009), The Role of Forensic Accounting in Solving the
Vexed Problem of the Corporate World, European Journal of Scientific Research,
Vol.29 No.2 (2009), pp.183-187, ISSN 1450-216X.
2. George. P and Podoli. L (2015), An Overview of Forensic Accounting in India,
National Conference on “Accounting, Finance and Management: Current Issues and
Developments. ISBN No. 978-81-925842-1-8.
3. Anitha. S, Salomi. S and Manjula. (2015) Impact of Forensic Accounting and Audit
in Detecting Fraud, “Accounting, Finance and Management: Current Issues and
Developments. ISBN No. 978-81-925842-1-8.
4. Santomero A. M, Commercial Banking Risk Management: an Analysis of the
process, Wharton School, Research Paper 95-11-C.
5. Okoye E.I and Gbegi D.O. (2013), An Evaluation of Forensic Accountants to
Planning Management Fraud Risk Detection Procedures, Global Journal of
Management and Business Research, Volume 13 Issue 1 Version 1.0 Year 2013,
ISSN: 0975-5853.
6. Kessey K. D. (2015), Assessing Credit Risk Management Practices in the Banking
Industry of Ghana: Processes and Challenges, Global Journal of Management and
Business Research: C Finance, Volume 15, Issue 6, Version 1.0, Year 2015, ISSN:
0975-5853.
7. Wael M. H. M. (2016), Risk Management of Banking Sector: A Critique Review,
American International Journal of Social Science, Vol. 5, No. 3; June 2016, ISSN
2325-4165. Retrieved from www.aijssnet.com
8. Arora H. and Bhatia M. (2020, June), The New Paradigm of Risk Management for Banking
Sector Post COVID-19. www.wipro.com. Retrieved from
https://www.wipro.com/banking/the-new-paradigm-of-risk-management-for-
banking-sector-post-covid-19/
9. Agrawal S. (2020, December, 16), Why rising forensic audits need clear set of rules; ghosts
of Sahara, Satyam scams still haunt, The Financial Express. Retrieved from
https://www.financialexpress.com/industry/why-rising-forensic-audits-need-clear-
set-of-rules-ghosts-of-sahara-satyam-scams-still-haunt/2151297/
10. Dhawan S. (2021, January 01), Your Money: 7 new rules impacting savings and
investments from January 1, 2021, The Financial Express. Retrieved from
https://www.financialexpress.com/money/your-money-7-new-rules-impacting-
savings-and-investments-from-january-1-2021/2162257/
11. Singleton W. Tommie, Singleton J. Aaron, Fraud Auditing and Forensic Accounting,
Fourth Edition, John Willey & Sons, Hobokon, New Jersey, Canada, 2010.
12. Dick, M.; Samuel, F.; & Blessing, E. (2014).The Effectiveness of Forensic
Accountants in Strengthening Internal Control of Business Organizations in Nigeria,
BVIMSR‘s Journal of Management Research :( 2014) 6 (1), 40-69.
69
13. Cendrowski H, Martin C. P, Petro L. W, The Handbook of Fraud Deterrence, John
Willey & Sons, Hobokon, New Jersey, Canada, 2007. ISBN-13: 978-0-471-93134-8.
Pg. No. 13.
14. AICPA (2011), ―The 2011 Forensic and Valuation Services Trend Survey, AICPA,
Retrieved from www.aicpa.org
15. George A. Manning "Financial Investigation and Forensic Accounting”, 2005, Taylor
& Francis Group International Standard Book Number-10: 0-8493-2223-5
16. Silverstone H, Sheetz M, Pedneault S and Rudewicz F (2012). Forensic Accounting
and Fraud Investigation for Non-Experts (3rd ed.), New Jersey, John Wiley & Sons,
Inc.
17. Chakrabarthy K. (2013, Jul 26). Frauds in the Banking Sector: Causes, Concerns and
Cures. Retrieved from https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=826
18. Cressey. D (1953) Other People’s Money: A Study in the Social Psychology of
Embezzlement. Free Press, Glencoe.
19. Notes on Forensic Accounting by Institute of Certified Public Accountant of Pakistan.
20. Oyedokun G. E., (2013) An Assessment of the Role of Forensic Accountants in
Litigation Support Services (An explanatory approach), Social Science Research
Network Electronic Journal, ISSN: 1556-5068. Retrieved from
https://www.researchgate.net/journal/1556-5068_SSRN_Electronic_Journal
21. David L. Bickelhaupt, General Insurance, 9th ed., Homewood, Illinois: R.D. Irwin,
1974, p. 2.
22. George E. Rejda, Principles of Insurance, 3rd ed., Glenview, Illinois: Scott, Foresman
and Co., 1989.
23. C. Arthur Williams, Jr. and R.M. Heins, Risk Management and Insurance, 6th ed.,
New York: McGraw-Hill Book Co., 1989, p. 8
24. J.L. Athearn, S.T. Pritchett and J.T. Schmit, Risk and Insurance, 6th ed., St Paul: West
Pub. Co., 1989, p. 1
25. Emmett J. Vaughan, Fundamentals of Risk and Insurance, 5th ed., New York: John
Wiley & Sons, 1989, P. 4.
26. K. Srinivas, Process of Risk Management, Perspectives on Risk, Assessment &
Management Paradigms, p. 3. DOI: http://dx.doi.org/10.5772/intechopen.80804
27. Kolomiyets T., Settling the risk management system, Guidelines on Risk
Management. Retrieved from
https://statswiki.unece.org/display/GORM/1.1+Definition+of+risk+and+risk+mana
gement
28. Dutta S. K. (2013). Statistical Techniques for Forensic Accounting Understanding the
Theory and Application of Data Analysis, New Jersey, FT Press.
Websites
1. www.rbi.org.in
2. www.sbi.org
3. www.bankofbaroda.in
4. www.yesbank.in
5. www.hdfcbank.com
70
6. www.portal.mcgm.gov.in
7. http://censusindia.gov.in/2011census/dchb/2723_PART_B_DCHB_%20MUMBAI.
pdf (Page no. 24).
8. http://indiaforensic.com/frauds
9. http://www.ifs.edu.in/forensic-accounting-and-fraud-examiner
10. https://corporatefinanceinstitute.com/resources/knowledge/strategy/risk-
management/
11. https://www.merriam-webster.com/dictionary/forensic
12. https://legal-dictionary.thefreedictionary.com/forensic
13. www.brumellgroup.com
Reports
1. Annual Report State Bank of India for the period of 2009 – 2010 to 2018 – 2019.
2. Annual Report Bank of Baroda for the period of 2009 – 2010 to 2018 – 2019.
3. Annual Report Yes Bank for the period of 2009 – 2010 to 2018 – 2019.
4. Annual Report HDFC Bank for the period of 2009 – 2010 to 2018 – 2019.
Place: Mumbai
Date:
Signature of the Guide Signature of the Student
Dr. Jyoti Thakur Ms. Sangeeta Kanojia
71
ANNEXURES
Annexure 1 – List of Private Sector Banks
72
Annexure 2 – List of Public Sector Banks
73

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SYNOPSIS

UNDER THE GUIDANCE OF

2. Significance of the Study 2

3. Objectives of the Study 3

4. Review of Literature of the Study 4

5. Conceptual Framework of the Study 8

7. Hypotheses of the Study 19

8. Findings of the Study 51

9. Conclusions of the Study 60

10. Limitations of the Study 65

11. Chapter Outline 65

12. Future Research 68

According to the Webster’s Dictionary ‘Forensic’ means Belonging to, used in or

The banking frauds since 2009-2010 to 2018-2019 is shown in Chart 1.1.

Source: RBI Annual Reports (2009-10 to 2018-19)

Due to the increasing frauds, growing competition, increased volatility and

Thus, the study aims on determining the perception of stakeholders towards

2. Significance of the Study

3. Objectives of the Study

1. To study the concept of forensic accounting and risk management.

4. Review of Literature of the Study

5. Conceptual Framework of the Study

5.2 Concepts Related to Forensic Accounting

5.3 Concepts Related to Fraud

(2) Sources of Data

The descriptive approach is a widely used methodology in the research

(3) Period of the Study

(4) Area of the Study

(6) Sample Size

7. Hypotheses of the Study

C – Hy 1: The level of awareness of stakeholders of Frauds in Banking Industry is

Table 7.1 (A)

E – Hy 1: The level of awareness of stakeholders of forensic accounting is independent of

Table 7.1 (B)

C – Hy 1: Customer education about types of frauds customer can come across is

Null Hypothesis(H03): There is no significant difference in the agreement levels of the

C – Hy 1: There is no significant difference in the agreement levels of the customers on

E – Hy 1: The fraud risk management method comprehensive risk measurement approach

Table 7.5 (A)

F – Hy 1: The fraud risk management method comprehensive risk measurement approach

Table 7.5 (B)

E – Hy 1: The corporate governance practice transparency and disclosures of risk

1. Forensic accounting is used to detect and prevent fraud.

F – Hy 1: There is no significant difference in the agreement levels of the forensic

8. Findings of the Study based on Hypotheses

Findings of the Study – I (Customers)

Findings of the Study – II (Bank Managers and Officers)

Findings of the Study – III (Forensic Accountants)

Findings based on Hypothesis: Agreement levels of the forensic accountants on opinion

9. Conclusions of the Study based on Hypotheses

Conclusions of the Study – II (Bank Managers and Officers)

Conclusions based on Demographic Profile of Bank Managers and Officers

Conclusions of the Study – III (Forensic Accountants)

Conclusions based on Demographic Profile of Forensic Accountants

Conclusions based on Hypothesis: Fraud risk management methods used by the

Conclusions based on Hypothesis: Agreement levels of the forensic accountants on

10. Limitations of the Study