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Audits

Fighting corruption behind the scenes: The evolving and ever important role of forensic audits in international development

Ryna Ferlatte's picture

Ryna Ferlatte heads the Forensic Services Unit of the World Bank’s Integrity Vice Presidency (INT). She has over 20 years of experience in forensic accounting, audit and corporate financial accounting, and reporting. In this interview, she provides a window into the field of forensic auditing and explains why it's so important to global anti-corruption efforts.

Why do we know so little about forensic auditing?

Big corporate fraud and corruption cases like Enron, Satyam, Siemens and others offer the basis of knowledge for what forensic auditors can contribute, but forensic accountants often work in the background of these large investigations.  These cases show that the standard checks and balances, such as compliance, internal audit and external audit, are not always enough to prevent fraud and corruption.  The role of an independent oversight function such as INT is critical and the World Bank has been a leader in including forensic auditing as part of the exercise of its audit and inspection rights of Bank-funded contracts.  But this is not the only way forensics can add value.

Today, there is more recognition that forensics can be used not only to identify and quantify fraud and corruption losses, but also can serve as a deterrent and help reduce instances of such wrongdoing. And while forensic standards and tools are evolving globally, the results of forensic audits emphasize its value as an effective tool that can be also used proactively to cut financial losses in vulnerable sectors and high-risk projects.

Weekly Wire: The Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.


Different Take on Africa
Good Governance vs. collective action

"It’s time for donors to get out of their addiction to Good Governance! No country has ever implemented the current donor-promoted Good Governance agenda before embarking on social and economic development. This was true for rich countries before they became rich, and it is true for the rapidly ‘catching up’ countries of Asia today. Countries in sub-Saharan Africa are no exception. They are therefore not helped to get out of poverty by donor insistence on prior achievement of Good Governance, meaning adoption of the institutional ‘best practices’ that emerged in much richer countries only at a later stage in their development. This is a main message of the Joint Statement of five research programmes, which has just been published. You may also like to see the PowerPoint presentation of the Joint Statement." READ MORE