Forensic Accounting: The Untapped Potential to Improve Nepal’s Financial System
Summary
Forensic accounting is proposed as a crucial method to detect financial fraud, improve transparency, and rebuild trust in Nepal's fragile financial system plagued by cooperative collapses, government arrears, and corruption.
Key Points
- Forensic accounting is a vital tool for uncovering fraud and ensuring transparency in financial records beyond traditional audits.
- Nepal's financial system faces significant challenges including cooperative collapses, rising government arrears, and widespread corruption.
- The Auditor General's report highlights Rs. 91.59 billion in new arrears, indicating weak financial monitoring in government bodies.
- Instituting forensic accounting across high-risk sectors can strengthen accountability, protect public funds, and restore trust in Nepal's financial system.
