Forensic accounting is an emerging field in the area of accounting which is concerned with the detection and prevention of economic fraud and white-collar criminal activities. It gained importance in recent years as there is an increase in the number of frauds. Forensic accounting is defined as a term which involves the application of different skills like accounting, auditing, financing quantitative methods, research, and investigative skills. Forensic accounting is an extremely important tool to detect, investigate, and prevent fraud. Forensic accounting is making use of assorted tools to detect and prevent financial frauds and white-collar crimes. In India unfortunately it's getting used as an investigative tool, instead of a preventive tool. The objective of this paper is to obtain knowledge about the meaning of forensic accounting. In order to help organizations to evaluate the essentials of Forensic Accounting, this research paper aims to identify real advantages of implementation of Forensic Accounting within an economic entity. The present research paper concentrates on exploring the concept of Forensic accounting; the study also aims at identifying the problems of forensic accounting in India.