ICAG sanctions 4 auditing firms involved in collapse of banks

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The Institute of Chartered Accountants (ICAG) has sanctioned four auditing firms that audited the seven banks that collapsed in 2017 and 2018.

The four firms, according to the ICAG have been sanctioned for non-compliance with auditing standards.

Last year, ICAG formalised procedure to handle complaints against its members. The Professional Standards and Ethics Committee of the Institute, in line with its mandate, initiated the necessary enquiries on the matter and that appropriate action will be taken if merit to the complaint is established.

The committee was also to determine:

i) Why couldn’t the external auditors of these banks pick up the going concern difficulty signals during the audit process?

ii) Does it amount to inefficiency or negligence?

iii) Is there any disciplinary action the Institute can apply to these auditing firms?

Disciplinary Committee recommendations

Sources tell JoyBusiness, ICAG Council has endorsed the recommendations of the Disciplinary Committee to sanction the affected audit firms.

The Institute has said it will in due course issue a statement particularizing the sanctions meted out to the respective firms.

However, ICAG has insisted that the said infractions did not lead to the seven banks being placed under receivership.

The Institute says it will in due course issue a statement particularizing the sanctions meted out to the respective firms. However, ICAG wishes to state emphatically that the said infractions did not lead to the seven (7) banks being placed under receivership.

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