The Application Dilemma, Causes and Improvement Path of Forensic Accounting Loss Measurement in Financial Fraud Cases

Abstract

A pivotal aspect of financial fraud case adjudication involves establishing verifiable and defensible quantification of investor losses. Forensic accounting, as an interdisciplinary field integrating accounting, auditing, and legal expertise, demonstrates unique professional advantages in loss measurement. However, China's practice still faces critical challenges including an underdeveloped measurement framework, non-standardized methodology selection, and inconsistent reporting formats. This study systematically reviews existing literature and case studies, applying the "problem-cause-response" research paradigm to analyze practical dilemmas in forensic accounting loss measurement for financial fraud cases. By examining institutional frameworks, technical standards, and talent development from three dimensions, it proposes a progressive improvement path encompassing "enhanced regulations, unified methodologies, and strengthened talent cultivation". These recommendations aim to provide actionable policy suggestions for elevating investor protection standards in China's capital markets.