20 March

We all Need to Keep Abreast with Unique Approaches in Order to Mitigate Fraud – CPA Isingoma

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20 March 2024

By Caroline Nassuuna

Communications Officer

Participants at the 2nd Public Finance Management (PFM) Conference have been notified about the need to carry out forensic audits within their organisations upon prediction of fraud. While delivering his presentation on Forensic Audits: Lessons and Experiences, CPA Hussein Isingoma, the Commissioner Internal Audit Management Department in the Office of the Internal Auditor General, remarked that forensic audits must be whenever there is need to resolve a specific issue.

According to CPA Isingoma, the foundation of investigation is usually circumstances of suspicion, which may alert a prudent observer to potential fraud, to determine culpability. He also noted that a forensic report must be able to address the 5W’s (Who, What, Why, When, Where) in a pursuit to resolve a specific issue.

“There is need to strike a balance between competence and integrity while carrying out forensic audits, ensuring legal, procedural and ethical issues to avoid cases of pushback, when the hunter becomes the hunted,” noted CPA Isingoma.

The auditor highlighted the vital role of the internal auditor that usually faces challenges associated with limited specialised expertise, as well as limitations to gather robust evidence to ensure unscrutinised audit findings.

“Some of the indicators of fraud among individuals include living beyond one’s means, questionable employee vendor relations and refusal to change roles and responsibilities. Whereas, at organisation level, fraud is characterised with ineffective internal controls, poor tone from the authority, deficiency within the recruitment and promotion procedures, as well as high or very low personnel turnovers for sensitive issues,” explained CPA Isingoma.

Recommendations were made towards fraud detection and prevention, including;