Sensors and transducers play a vital role in the productivity of any industry. A sensor that is frequently used in industries to monitor flow is an orifice flowmeter. In certain instances, faults can occur in the flowmeter, hindering the operation of other dependent systems. Hence, the present study determines the occurrence of faults in the flowmeter with a model-based approach. To do this, the model of the system is developed from the transient data obtained from computational fluid dynamics. This second-order transfer function is further used for the development of linear-parameter-varying observers, which generates the residue for fault detection. With or without disturbance, the suggested method is capable of effectively isolating drift, open-circuit, and short-circuit defects in the orifice flowmeter. The outcomes of the LPV observer are compared with those of a neural network. The open- and short-circuit faults are traced within 1 s, whereas the minimum time duration for the detection of a drift fault is 5.2 s and the maximum time is 20 s for different combinations of threshold and slope.