Definition of Forensic Accounting 

In forensic accounting, an investigation of business and financial records is undertaken to determine whether fraud, money laundering, or other crimes have been committed. A forensic accountant is responsible for conducting an in-depth analysis of financial information. In a court of law, they present their findings based on the full investigation. Accountants who conduct forensic investigations often attest to the quality of their work. Additionally, these professionals are called upon to provide testimony during trials. There are many types of financial conspiracies that can be investigated by forensic accounting, including money laundering, insolvency, embezzlement, insurance fraud, fraud in securities, theft of assets, financial fraud, divorces, domestic disputes, and tax evasion.

Global Forensic Accounting Market: Key Insights

Global Forensic Accounting Market Highlights Over 2023 - 2033

The global forensic accounting market is estimated to garner a revenue of ~ USD 12 billion by the end of 2033 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~ USD 5 billion in the year 2022. A subset of accounting, financial accounting, investigates and establishes the financial fraud committed by an organization or its employees. The significant growth of financial fraud globally is the primary factor leading to the development of the global forensic accounting market. It has been estimated that more than 45% of organizations worldwide should have experienced corruption, fraud, or economic crimes in the last two years.  

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Further, financial statement fraud has been observed to be the occupational fraud causing the most economic loss. It has also been estimated that external perpetrator activities in financial frauds like those by hackers (~32%) and organized crime rings (~29%) have increased substantially.

Global Forensic Accounting Market: Growth Drivers and Challenges

Growth Drivers

• Growth in the Practice of Work from Home - It is estimated that ~56% of business globally offers remote work to some extent. Close to 90% of enterprises globally encouraged or made it mandatory for their employees to work from home once COVID-19 was declared a pandemic. More than 75% of telecommuters have reported being more productive because of remote working, while close to 100% of remote workers prefer telecommuting in the future too. However, the lack of security awareness among telecommuters was considered a challenge in 2021.

• Increased Use of Data Analytics in Organizations for Revenue Growth – It has been observed that data-driven companies are more than 55% more likely to reach their revenue goals than those who are not data-focused.

• Growing Use of Artificial Intelligence (AI) in Enterprises – From 2015 to 2019, a growth of ~271% was observed in the number of businesses adopting AI.

• Growing Use of Machine Learning (ML) by Enterprises - ~21% of C-level executives globally agree to use ML as a significant part of their business.

Challenges

• High Expenses Associated with Forensic Accounting- Considering the length of time required for forensic accounting, the process can be quite costly. In contrast, this is not a problem for large corporations with an abundance of resources, but it can present a challenge for smaller businesses with limited resources.

• Concerns About Data Privacy and Data Sharing

• Rigorous and Unsupportive Government Laws

 The global forensic accounting market is segmented and analyzed for demand and supply by deployment model into on-premise and cloud. Between these, the cloud segment is anticipated to hold the largest market size by the end of 2033. The main reason for the growth of the segment is thought to be the wide adoption of cloud services globally. For instance, ~95% of businesses have been observed to use cloud services, while close to 70% of enterprises boasted cloud-based infrastructure. Increased security, flexibility, and scalability are thought to be the reasons encouraging the use of cloud technology. For instance, ~95% of businesses reported considerable improvement in online data security on the cloud. 

Global Forensic Accounting Market Regional Synopsis

The North American forensic accounting market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The increased adoption of work-from-home, data analytics, ML, and more are the reasons for the market growth in the region. For instance, it was observed that close to 60% of employees in the U.S. had the option to work from home for part of or an entire week. The region leads in ML adoption, with ~81% of organizations utilizing ML.

Market Segmentation

Our in-depth analysis of the global forensic accounting market includes the following segments:

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Key Companies Dominating the Global Forensic Accounting Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global forensic accounting market that are included in our report are Galvanize (Diligent Corporation), CaseWare International Inc., Cellebrite DI Ltd., e-fence, Fulcrum Financial Inquiry LLP, Nuix Limited, Open Text Corporation, Passware, Sama Audit Systems & Softwares Pvt. Ltd., Arbutus Software Inc., and others.

Global Forensic Accounting Market: Latest Developments

• September 2022: Cellebrite DI Ltd. – announced collaborating with Lake Jackson Police Department to empower the department’s digital intelligence platform.

• August 2022: Open Text Corporation – announced reaching an agreement on an all-cash offer to acquire the share capital of Micro Focus.

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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