Although companies are legally required to be audited in order to detect financial fraud, audits do not always detect wrongdoing. The failure of internal and external audits has led to a greater need for forensic accountants to investigate fraud. One topic that could be examined is why the statutory-audit system often fails to catch fraud, and how to improve it by improving forensic-accounting standards.
News reports on huge multinational corporations that engage in massive fraud are sadly not uncommon. These swindles are usually on such a large scale that it is impossible for only one person to be the perpetrator. Such financial deceit is carried out by a team of people who have conspired to commit it. Forensic accounting students could research what safeguards are needed to catch wrong-doers before they cause irrevocable damage.
For students who are interested in the global state of forensic accounting, they might enjoy researching forepresentnsic-accounting standards in other countries. For example, China or India could be case studies in forensic accounting, especially when compared to the field in the US. In addition, a student could compare two different countries outside of the US, such as England and India. This type of report could provide insights into forensic-accounting practices around the world.
According to the The Journal of Forensic Accounting, there is anecdotal evidence to show that the popularity of studying forensic accounting is rising. Students could research whether this is true. And if true, what factors are causing students to enter this field? Another related research topic is whether forensic accounting graduates are satisfied with the results of their education, have they found employment, and if they have, has it met their expectations?