BoG gets clean audit opinion but KPMG flags investment risk areas

The Bank of Ghana has received an unmodified audit opinion on its 2025 financial statements, although auditors have highlighted key areas of risk that required significant judgement, particularly in relation to investment impairments.

In its independent report, KPMG stated that the central bank’s financial statements are fairly presented in all material respects and prepared in line with the stated basis of accounting.

Despite the clean opinion, the auditors identified impairment on investment securities as a critical audit matter. As at December 31, 2025, the Bank’s investments measured at amortised cost exceeded GH¢116 billion, with an expected credit loss allowance estimated at about GH¢17.26 billion.

According to the report, determining these losses involves complex modelling and substantial judgement, making it a high-risk area for potential misstatement. Key assumptions underpinning the calculations include default probabilities, loss given default, and forward-looking macroeconomic indicators such as inflation and exchange rates.

To address these risks, KPMG said it undertook extensive audit procedures, including testing internal controls, verifying data inputs against source documents, and independently recalculating impairment figures for selected samples.

The auditors also evaluated whether the methodologies applied by the central bank are consistent with International Financial Reporting Standards.

KPMG further drew attention to the Bank’s unique accounting framework, which is influenced by statutory requirements. While IFRS is used as a guide, certain provisions under national legislation, particularly those relating to gold holdings, foreign exchange, and special drawing rights, take precedence.

As a result, the auditors cautioned that the financial statements may not be suitable for purposes outside their intended scope.

Despite these complexities and identified risk areas, KPMG concluded that there were no material misstatements in the financial statements and reported no inconsistencies between the audited accounts and accompanying information.