This study investigates the perceptions of internal auditors regarding the effectiveness of Artificial Intelligence (AI) in detecting fraudulent activities and strengthening internal control systems within public universities in Ghana. While AI is being increasingly integrated into audit practices globally, its application and perceived impact in public sector institutions, particularly in developing countries, remain underexplored. Ghanaian public universities, facing resource constraints, bureaucratic inefficiencies, and weaknesses in audit frameworks, present a compelling context for examining AI’s role in improving governance and transparency. A mixed-methods approach was employed, combining survey data from 176 internal auditors with qualitative insights from six audit leaders. The Technology Acceptance Model (TAM) and Agency Theory were applied to analyze the perceived usefulness (PU) of AI and its potential to mitigate information asymmetry. Results reveal that internal auditors generally regard AI as highly effective in enhancing fraud detection, particularly in terms of real-time anomaly identification, increasing accuracy, and reducing false positives. AI’s contribution to strengthening internal control mechanisms was also recognized, though challenges related to limited technical training, suboptimal integration of audit and IT systems, and underutilization of advanced AI tools were identified. The study highlights the need for focused auditor training, improved inter-departmental collaboration, and institutional policies that foster AI adoption. These findings contribute to the growing body of literature on the role of AI in public sector auditing, particularly in Sub-Saharan Africa. By integrating quantitative and qualitative data, the study offers a comprehensive analysis of AI’s perceived effectiveness in addressing governance challenges in Ghana’s higher education sector, filling a significant gap in existing research.
State-Owned Enterprises (SOEs) are essential for economic development but frequently suffer from endemic corruption and financial mismanagement, particularly in developing economies where traditional auditing mechanisms fail to detect complex financial crimes. This study investigated the primary determinants of fraudulent financial reporting by empirically validating the Fraud Hexagon Theory within the distinct institutional context of Zimbabwe. Adopting a quantitative causal-comparative research design, the study utilized multiple linear regression to examine the influence of six governance indicators and analyzed data from 38 SOEs listed on the Zimbabwe Stock Exchange between 2015 and 2024. The results demonstrated that the model explained 67.5% of the variance in fraudulent reporting, hence confirming the holistic applicability of the Fraud Hexagon Theory. Crucially, external financial pressure stemming from unsustainable debt emerged as the strongest predictor of fraud, followed significantly by collusion in government projects and executive ego. Furthermore, the findings revealed that while frequent change of directors degraded institutional memory and increased the risk of fraud, mandatory rotation of auditors acted as a significant deterrent. It was concluded that financial fraud in Zimbabwean SOEs was not merely an individual behavioral issue but a systemic outcome of unfunded government mandates and state capture. These findings suggested that safeguarding public resources necessitated a strategic shift from routine compliance to targeted forensic auditing, alongside the strict enforcement of meritocratic board appointments and transparency in the procurement process.
The digital transformation of professional sectors requires a systematic renewal of processes, and the accounting profession is no exception. In Sub-Saharan Africa (SSA), active engagement with digital transformation is critical for accounting professionals, who must adapt to meet emerging demands in a rapidly evolving digital landscape. This transformation entails not only technological upgrades but also a shift in the societal perception of the accounting profession, driven by enhanced operational efficiency, data security, and transparency facilitated by digital systems. However, significant challenges hinder the seamless integration of digital technologies in accounting practices across the region. These include concerns regarding ethics, inadequate digital infrastructure, high implementation costs, cybersecurity threats, and a skills gap among professionals, compounded by institutional resistance to change. Nevertheless, the digital transformation offers substantial opportunities to enhance efficiency, accountability, and transparency in accounting operations. AI technologies, for instance, can automate repetitive tasks, enabling accountants to focus on more strategic, advisory roles. The potential for digital innovation also extends to fostering collaboration among stakeholders, including government bodies, which could play a pivotal role in creating the necessary infrastructure and policy frameworks to support digital transformation. Furthermore, partnerships between industry and academia are essential for the development of curricula that address the evolving needs of the profession. In light of these considerations, it is essential that efforts are made to overcome existing barriers, while leveraging digital transformation to foster a more efficient, transparent, and resilient accounting profession across SSA.
The incorporation of environmental, social and governance (ESG) activities into business strategies has become a predominant way to maintain business sustainability. The impact of ESG adoption on financial reporting outcomes has been a subject of interest to authors in recent years. Nevertheless, studies that discussed and synthesized relevant theories and concepts in this domain are lacking in the literature to date. To fill this gap, this study adopted a narrative review approach to examining ESG and financial reporting outcomes (FROs), with an aim to identify and synthetize FROs that have been proposed and associated with a firm’s ESG activities. In addition, this paper commented on the state and development of knowledge in the field of ESG and FRO as well as the limitations of prior research. Although the incorporation of ESG activities into business strategies produces positive FRO outcomes such as enhanced accounting quality, improved performance of a firm, and decreased cost of equity capital and debts, inconsistent propositions still remain. The findings presented in this study are unresolved, leading to ongoing inquiry and the need for further research. The review has implications for investors and policymakers to consider whether ESG could be used as a tool to potentially improve the credibility of financial reports and the outcomes of a firm’s operational activities.
This study investigated the impact of financial inclusion, driven by digital financial platforms, on economic growth in Ghana between 2000 and 2023. Using secondary data from the World Development Indicators, the analysis applied Nonlinear Autoregressive Distributed Lag (NARDL) and Quantile ARDL (QARDL) models to capture both asymmetric and distributional dynamics. Existing literature affirmed the positive role of financial inclusion in development, but it often assumed linear and homogeneous effects and overlooked potential asymmetries. Despite global advances, financial exclusion remains acute in sub-Saharan Africa, where weak infrastructure, institutional inefficiencies, and structural barriers constrain access to finance. The results revealed that improvements in financial inclusion significantly enhanced economic growth by expanding savings, credit access, and productive investments, while reductions in inclusion undermined growth by restricting capital mobilisation and weakening financial intermediation. These findings highlighted the dual role of financial inclusion as both a growth enabler and a potential constraint when exclusion persists. Policy recommendations include expanding digital financial infrastructure in rural and marginalised communities, strengthening regulatory frameworks to enhance consumer protection and trust, and broadening financial literacy programmes to ensure effective utilisation of financial services. By integrating nonlinear and quantile-specific estimations, this study contributes new evidence to the fragile yet transformative role of digital finance in the development trajectory of Ghana.
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