Fintech and Beyond

  In today’s hyper-digital world, artificial intelligence is not just a tool for innovation—it’s also a weapon for deception. One of the most alarming trends in fraud today is the rise of synthetic identity fraud, where criminals use AI to fabricate entirely new digital personas. These synthetic identities are then deployed in schemes that range from credit card fraud and loan scams to elaborate identity theft rings, inflicting billions in financial damage annually. What is Synthetic Identity Fraud?   Unlike traditional identity theft, which involves stealing an existing person’s credentials, synthetic identity fraud blends real and fake information to create a new, fictitious identity. A scammer might pair a stolen Social Security number with a fake name, AI-generated photo, and fabricated employment history. These identities are realistic enough to fool banks, lenders, and even government agencies. What makes synthetic identity fraud particularly dangerous is the lack of a ...

  Fraud investigations in forensic accounting often focus on the examination of financial documents, data analysis, and technical tools. However, one of the most significant—yet often overlooked—components of fraud detection is the human aspect. Forensic accountants must recognize that behind the numbers, there are individuals whose motivations and actions play a pivotal role in committing and uncovering fraud. Understanding the human side of fraud reporting is key to effective investigations and preventing future incidents. The Human Side of Fraud: More Than Just Numbers Fraud is inherently a human-driven issue. While forensic accounting generally revolves around examining financial statements, identifying discrepancies, and finding financial evidence, the true cause of fraud often stems from human motivations. Financial pressure, greed, or even a sense of entitlement can compel employees to engage in fraudulent behavior. A key challenge for forensic accountants is understandin...

  The Rising Threat of Fraud and the Need for Smarter Solutions Fraud is a growing concern across industries, from finance and healthcare to e-commerce and insurance. Traditional fraud detection methods rely on rule-based systems, which are often rigid and struggle to keep up with evolving fraud tactics. As fraudsters adopt more sophisticated techniques, businesses require advanced solutions to mitigate risks and secure their assets. Predictive analytics and artificial intelligence have emerged as powerful tools to detect and prevent fraudulent activities more efficiently. By analyzing historical data, identifying patterns, and predicting potential fraud risks, businesses can significantly reduce financial losses and enhance security. The integration of AI-driven solutions allows organizations to operate with increased confidence, safeguarding transactions and customer trust. How Predictive Analytics and AI Detect Fraud Before It Happens Predictive analytics involves using historic...

This article follows up on my previous piece,  “Small Firm, Big Standards: Cracking the Code of ISQM 1 for Small and Medium Practices (SMPs).”  In that article, I explored practical strategies for implementing the International Standard on Quality Management 1 (ISQM 1) in SMPs. Today, I’ll address a specific challenge many practitioners have asked about: how to transition effectively from the International Standard on Quality Control 1 (ISQC 1) to ISQM 1. The move from ISQC 1 to ISQM 1 represents a major shift from a compliance-based framework to a proactive, risk-based system of quality management. While this transition may seem daunting, it is an opportunity for SMPs to strengthen their quality processes, enhance efficiency, and stay ahead in an increasingly complex regulatory environment. In this article, I’ll outline actionable steps to help SMPs make the upgrade to ISQM 1 seamless and manageable, creating a tailored system of quality management that aligns with the new s...

The COVID-19 pandemic brought about dramatic changes to the way businesses and professionals operate, and the auditing profession was no exception. While the pandemic posed challenges such as remote operations, economic uncertainty, and new risks, it also became a powerful catalyst for transformation. These changes have left a lasting impact on audit quality, driving the profession toward greater efficiency, adaptability, and resilience. In this article, we explore six key transformations sparked by the pandemic that have significantly improved audit quality, redefining the profession for the better. 1. Rapid Digital Transformation in Auditing The pandemic accelerated the adoption of advanced technologies within the auditing profession. Audit firms were forced to rely on digital tools to overcome the challenges of remote work, and this technological shift brought lasting benefits to audit quality. Auditors increasingly moved away from traditional sampling methods and began leveraging d...

Over the years, I’ve received countless inquiries from professionals in small and medium practices (SMPs) who want to know how to effectively implement the International Standard on Quality Management 1 (ISQM 1). These conversations often revolve around the same questions: “How do we align our limited resources with ISQM requirements?”  or  “How can we make the transition from International Standard on Quality Control 1 (ISQC 1) to ISQM 1 without overwhelming our team?” The challenges are real, especially for SMPs where resources and capacity are often stretched thin. At Auditor Training Institute, we have a deep understanding of the challenges that SMPs face when implementing ISQM 1. Our extensive experience has allowed us to guide many firms through this process successfully. In this article, I’ll share  practical strategies for implementing ISQM 1 , focusing on how SMPs can tailor the system to their specific needs. While this piece focuses on setting up ISQM 1 effect...

On January 22, 2025, Ghana introduced new thresholds for Small and Medium-sized Enterprises (SMEs) under the Companies Act, 2019 (Act 992). These thresholds, which define revenue and asset limits for small, medium, and large companies, mark a significant shift in the regulatory landscape. Designed to simplify compliance and encourage business formalization, the changes are a welcome development for entrepreneurs and smaller businesses. However, they also carry implications for audit firms and the broader economy. Historically, the definition of SMEs in Ghana has been a contentious issue, especially in the context of applying the International Financial Reporting Standard (IFRS) for SMEs. The ambiguity surrounding SME classifications often led to inconsistencies in reporting and confusion about regulatory obligations. Compounding these challenges was the requirement for micro-entities to file audited financial statements, which imposed substantial administrative and financial burdens on...