Forensic Auditing Techniques in Guyana: A Review
By John Seeram, Special to the Guyana Times
September 2, 2018
The Need for Effective Forensic Auditing Techniques in Guyana
As Guyana continues to grapple with financial mismanagement and corruption, the need for effective forensic auditing techniques has never been more pressing. In recent years, numerous audits have been conducted by reputable accounting firms and individual auditors, but the question remains: were these audits truly forensic in nature?
The Difference Between Operational, Financial, and Forensic Audits
In my opinion, many of the audit reports published online can be classified as operational and financial audits, rather than true forensic audits. Operational audits focus on an organization’s business practices, with the aim of recommending improvements to increase efficiency and effectiveness. Financial audits, on the other hand, examine an organization’s financial statements to ensure their accuracy and credibility.
However, a true forensic audit is focused on investigating fraudulent activity and gathering evidence to prove improprieties. This type of audit requires specialized skills and knowledge, as well as experience in legal frameworks and investigative techniques.
The State of Audits in Guyana
The Government of Guyana has commissioned over 50 audits in recent years, but it remains unclear whether these audits have been conducted with a forensic focus. While some reports may touch on issues related to fraud and corruption, they often lack the depth and expertise required to conduct a thorough investigation.
The Role of Forensic Auditors
Forensic auditors must be highly skilled professionals who can:
- Identify and gather evidence of fraudulent activity
- Explain complex accounting issues in a court of law
- Be comfortable with appearing in court to present their findings and defend their work
The Importance of Developing Local Expertise
It is crucial that Guyana develops a quota of auditors with the necessary training and experience in forensic auditing techniques. If local expertise is lacking, specialized firms from around the world can provide assistance not only in conducting audits but also in providing much-needed training for accountants and auditors.
The Future of Forensic Auditing in Guyana
Forensic auditing is a highly specialized field that requires a broad spectrum of activities and skills. As Guyana continues to navigate its financial challenges, it is essential that we prioritize this critical area of expertise to ensure transparency, accountability, and good governance.
Conclusion
In conclusion, forensic auditing techniques are essential for uncovering fraudulent activity and promoting transparency in Guyana’s public sector. It is crucial that the country develops a quota of skilled forensic auditors who can conduct thorough investigations and gather evidence to prove improprieties.