Reducing occupational fraud through reforms in public sector audit: evidence from Ghana
| DOI | https://doi.org/10.1108/JFC-03-2022-0066 |
| Published date | 25 April 2022 |
| Date | 25 April 2022 |
| Pages | 702-715 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Samuel Kojo Agyemang,Paschal Ohalehi,Oscar Chijoke Mgbame,Kolawole Alo |
Reducing occupational fraud
through reforms in public sector
audit: evidence from Ghana
Samuel Kojo Agyemang
Department of Audit, Ghana Audit Service, Accra, Ghana, and
Paschal Ohalehi,Oscar Chijoke Mgbame and Kolawole Alo
Department of Accounting and Finance, De Montfort University, Leicester, UK
Abstract
Purpose –This paper aims to explore the contributionsthat public sector audit through reforms can make
in dealing withthe issues of occupational fraud in Ghana.
Design/methodology/approach –The issues surrounding the Ghana Audit Service (GAS) reports
issued to parliament were reviewedusing socio-legal methodology. The discussion as well as the theoretical
contributionis informed by stakeholder theory.
Findings –The findings show matchingof irregularities as reported by regular audit reports to schemesof
occupationalfraud and abuse as well as how the power to surcharge and disallow would serve as a deterrence
mechanismin the fight against occupational fraud.
Practical implications –This paper concludes with discussionson specific requirements including the
use of fraud investigators and modern forensictechniques in a collaborative effort with guidelines from the
Supreme AuditInstitution to minimise fraud.
Originality/value –This study, to the best of the authors’knowledge,is the first to explore the role of GAS
in minimisingoccupational fraud.
Keywords Audit, Auditor General, Surcharge and disallow, Public funds, Occupational fraud,
OccupyGhana, Supreme audit institutions
Paper type General review
1. Introduction
Occupational fraud is a significant and growing problem in Ghana and around the world
(Chung et al.,2021;Akomea-Frimpong et al.,2016;Singleton and Atkinson, 2011;Glodstein,
2009). For instance, in the past decade,a few high-profile occupational fraud cases, such as
the ones at Logitech International, Ener1, Tyco and WorldCom, have raised awareness of
this criminal activity (Andre et al.,2014;Moore, 2018). Occupational fraud is the intentional
misuse or misappropriation of an organisation’s assets by the organisation employee or
employees (Andre et al., 2014;Padgett, 2015). Furthermore, auditing profession is
increasingly being exposed to public scrutiny and in some cases, legal suits for the role it
plays in reducing the incidence and impact of occupational fraud in organisations (Malau
et al., 2019). In recent times, even the big accounting firms have had their professionalism
called into question (Kassem, 2018) because of their inability to identify fraud and
misrepresentation through their audits leading to the collapse of some well-known
organisations such as Enronand Carillion (Hays and Ariail, 2013). As an instance, PwC was
ordered by a US court to pay $625mn in damages for its failure to uncover fraud, whichled
to the collapse of Colonial Bank over non-existentmortgages (Gray, 2018). KPMG was fined
JFC
30,3
702
Journalof Financial Crime
Vol.30 No. 3, 2023
pp. 702-715
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2022-0066
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
To continue reading
Request your trial