Payroll Audit vs Forensic Audit: Catching Ghost Employees
- A fellow at the Center for Democratic Development (CDD), kwaku Asare, has called for a shift in auditing practices to tackle the persistent issue of "ghost names" on...
- Asare, speaking on Joy News, emphasized that ghost names have plagued the system for an extended period.
- The call for forensic audits comes as Ghana grapples with significant financial losses attributed to ghost names.
Kwaku Asare demands a pivot to forensic audits to combat ghana’s payroll “ghost names,” a call to action aimed at safeguarding the nation’s finances. News reports indicate that the country has lost ¢564.2 million due to fraudulent entries. Asare of the Center for Democratic Development (CDD) suggests that forensic audits are essential to uncover and penalize the perpetrators creating those fictitious entries, going beyond the limitations of standard payroll audits.These types of audits, he believes, can expose those behind the fraud. This contrasts with traditional payroll audits, which, according to Asare, are insufficient. The transition to a more proactive approach is crucial, and News Directory 3 is watching closely. Discover what’s next in the fight against payroll fraud and the submission of the primary_keyword. The secondary_keyword has played a crucial role in identifying fraudulent actions.
Kwaku Asare Urges Forensic Audits to Combat Payroll “Ghost Names”
Updated May 23, 2020
A fellow at the Center for Democratic Development (CDD), kwaku Asare, has called for a shift in auditing practices to tackle the persistent issue of “ghost names” on Ghana’s payrolls. Asare suggests that the Auditor General Department should prioritize forensic audits over traditional payroll audits to effectively identify and prosecute those responsible for creating these fraudulent entries.
Asare, speaking on Joy News, emphasized that ghost names have plagued the system for an extended period. He believes that merely identifying the ghost names themselves is insufficient; the focus must shift to uncovering and penalizing the individuals who create them. He argues that only through forensic audits can these “ghost creators” be brought to justice, preventing further financial losses.
The call for forensic audits comes as Ghana grapples with significant financial losses attributed to ghost names. According to reports,the nation has lost ¢564.2 million to these fraudulent payroll entries.
The prevalence of ghost names represents a long-standing challenge, and Asare’s recommendation aims to address the root cause of the problem by targeting the individuals perpetrating the fraud. He believes that a more proactive and investigative approach, through forensic auditing, is essential to curb these ongoing losses.
What’s next
It remains to be seen whether the Auditor General Department will adopt Asare’s recommendation and incorporate forensic audits into its strategy for combating ghost names on the payroll. The effectiveness of this approach will depend on the resources allocated to forensic investigations and the willingness to prosecute those found responsible.