The Role of Forensic Auditing in Corporate Governance and Risk Management

Abstract

This systematic literature review (SLR) examines the role of forensic auditing in enhancing corporate governance and managing fraud risks across organizational frameworks. By synthesizing findings from twelve peer-reviewed journal articles published between 2014 and 2025, the review explores the integration of forensic auditing practices with corporate governance structures and their impact on mitigating financial fraud. The findings indicate that forensic auditing plays a crucial role in strengthening internal control systems, improving fraud detection, and promoting transparency within corporate entities. It not only serves as a tool for detecting fraud but also acts proactively, identifying weaknesses in governance frameworks that may lead to financial misreporting. This review highlights the growing importance of forensic auditing as both a reactive and preventive mechanism, essential for safeguarding financial integrity and fostering corporate accountability. The study also explores how forensic auditing, when combined with technology and governance strategies, enhances decision-making processes, reduces financial risks, and strengthens ethical practices within organizations. The research findings contribute to the understanding of how forensic auditing can be strategically implemented to improve governance and risk management in the increasingly complex global business environment.