FRAUD AND CORRUPTIONIMPULSE STIGMATIZES AUDIT PRACTICE: A SOUR MINDSET.
The world is bleeding because of fraud and corruption. Since it is a global phenomenon let us join hands to witness and not to listen more to the victims of fraud and corruption and bring the vermin checked and brought to book through sector wide approach management systems. A more pragmatic military command syndicate can also profile the prompt action towards the productive management of controls and policy systems in organisations. More of these exposures by media result from poor auditing, poor financial record keeping and not protecting whistle blowers and lack of secrecy of client data and information. Who should expose this other than the internal auditor and additionally, internal auditors are not being taken relevant as it is with external auditors. Moreover, the most recent was fraud by Thomas Cook managing Director. Fraud can also cause people to die and or commit suicide like CEO of this company did. But all this can be prevented in case reliable expert auditors were employed to prevent such future chaos. Besides,an auditor can be an accountant, can be an auditor but not all Auditors are accountant. Auditing embraces all spectrums of responsibility and accountability in an effective and timely manner. Let’s not be obscured to think that to be an auditor you must be a financial accountant, bookkeeper, analyst, IT auditor and so on and so on.
Because of more demand for ethical and professional audit practice, many audit firms are changing their agenda to embrace the call for more invigorating auditing. Less research is done on audit matters which mostly were obscured by client loyalty. It is not the case now that clients must be seen to benefit from both professional auditing and assurance services in a tax regime. Major audit firms have come on board to make more changes and focus on auditing today and for the future. KPMG is in the lead making audit practice the main focus if auditing is to contribute to the global fight against fraud and corruption. At PAI we are ready for any change in training the ethical and professional audit practitioner. We agree with corporate governance institutions and codes thatthose mostly enforcing anti-corruption and fraud including money laundering in economies are being monitored except that ignorance and lack of skilled manpower engulf the intentions to curb the scourge. Even those at the top of corporate boards lack the urge to share skills among themselves and down the lower cadres in operational management.
Here we go, as nations are bleeding from fraud and corruption, audit training has also changed to respond to this call of duty. Since auditors are relied upon in any sphere, the profession must also step up its approach to provide outstanding audit reports and effectively communicate timely. Auditors can also provide within their mandate timely disclosure of any malpractices that are beyond audit scope not only on miscellaneous matters but on a vindictive point to evade a culprit person.
There has been an outcry that audit firms are more of consultants than auditors for auditing proper is bound to change forthwith.Financial times, Oct,2019 also reports that Accounting scandals in Indian, Satyam, South African Steinhoff and UK’S Carillion seem to be no longer great news as the status quo of failing organisations continue every other year and not much has changed since 2008. Auditors must provide meaningful information for decision making. auditors need incentives good enough to avoid audit liability and BDO warns that audit is BROKEN. But FT further publishes on auditors they need a strong incentive since they provide financial statements to be not only based on assurances and insurance contracts to deliver.
Many audit matters globally inform that Financial statements deeply do not conform to auditing and accounting standards.
I am indeed quite obliged to inform you that audit fraternity internationally embraces PPA audit certification program to qualify as a PPA as our focus to welcome you all at PAI as partners, donors and practitioners and learners.
Richard Gudoi Gid’Agui
MSc. Audit (Birm.C.U)UK,MBA,FPPA,CIA,CFE,CGFM,CFSA