The Financial Services Industry leader at Deloitte Ghana, Charlotte Forson-Abbey, has stated that it is not the responsibility of auditors to identify fraud in banks or institutions.

According to her, it is rather the responsibility of the management and board of the banks or institutions charged with governance to implement measures to detect fraud.

Mrs. Forson-Abbey disclosed this at a webinar organised by Deloitte on the topic “Banking Sector Fraud: How We See It and What Can Be Done.”

“Our main responsibility is to ensure that we form an opinion on financial statements and not necessarily specifically to do with fraud. So, the fact that I'm auditing a bank or institution does not mean that I'm going to detect fraud. It could come along as I move on”.

“And I mean, we see it happening. But it is not the full responsibility of auditors to detect, prevent fraud. So apart from the ISA 200 [International Standard on Auditing 200], there's also ISA 240, which also states that, look, the primary responsibility of fraud prevention and detection is really management of the financial institutions and those charged with governance”, Mrs Forson-Abbey who is an Audit Partner stressed.

“So, the board and the boards of committees, including the audit committee and all that, are the ones charged with governance to ensure that fraud is prevented or minimised. It is really their responsibility to ensure that the banks or the financial institutions have processes and systems in place to prevent fraud and to detect fraud”, she added.

In 2024, banks and other financial institutions dismissed 155 staff for fraud.

Indeed, the number of staff involved in fraudulent activities in Banks and Specialised Deposit-Taking institutions rose by 33% from 274 in 2023 to 365 in 2024.

Mrs. Forson-Abbey said forensic auditors can, however, investigate and uncover fraud.

According to her, the value for money audit, performance audit, among others, require auditors or other specialised investigators to investigate thoroughly to expose fraud.

“I must say that there are other kinds of audits, like the value for money audit, performance audit, and forensic audits. And all of these require specialised auditors who actually zero in to find out more about fraud. So, I think that perspective is very, very important.”, she mentioned.

The webinar also featured Eric Cab-Beyuo, Head of Fraud Compliance and Reporting Unit, Bank of Ghana and Patrick Baah Abankwa, Head, Member Experience and Growth, Chartered Institute of Bankers, Ghana.