This paper explores how digital forensic accounting can help in combating the embezzlement of public funds in Iraq and how it will help in the vision of sustainable development. The study uses the information of Iraqi government, international reports, and comparative evaluation in understanding how information systems strategies could be used to increase the effectiveness of fraud detection, investigation, and recovery in the Iraqi public sector. According to the available sources, there have been huge losses to the public funds since 2003 with projections of between 150-450 billion USD of the funds lost being as per different official and parliamentary sources. Iraq experienced a slight positive increase in the Transparency International Corruption Perceptions Index as the country was ranked 23 points (2023) and 26 points (2024). According to recent statistics, there has been a massive rise in digital payments, which have risen to 7.6 trillion Iraqi dinars (2024) upon 2.6 trillion Iraqi dinars (January 2023) indicating that there is a substantial infrastructure that can be used to support digital forensic applications. Statistically, the analysis shows that the issues of digital infrastructure capacity and forensic accounting effectiveness (b = 0.687, p < 0.001), forensic effectiveness and fund recovery rates (b = 0.759, p < 0.001), fund recovery and sustainable development impact (b = 0.634, p < 0.001) are strongly correlated. The cost benefit analysis shows outstanding returns of NPV of 1.758.2 million and ROI of 998. These results have immense implications to policy makers, auditors and development practitioners who may want to consider technological solutions to enhance financial integrity as Iraq seeks sustainable development agendas.