ICAG to investigate auditors of collapsed banks

The Institute of Chartered Accountants, Ghana (ICAG) has begun an enquiry into the role of auditors in the collapse of seven banks within the last 12 months.

The investigation is to be handled by the Professional Standards and Ethics Committee of the Institute, which is a body of professional accountants and auditors in Ghana.

A statement from the Council of ICAG said the investigation was necessitated by public anxiety over the role of auditors in the collapse of uniBank, Sovereign, Construction, Beige, Royal, UT and Capital banks.

The Council further assured the public that the Institute has a formalised procedure to handle complaints against its members.

Read also: Collapse of banks: Auditors failed everybody

Below is a copy of the ICAG statement

THE INSTITUTE OF CHARTERED ACCOUNTANTS - GHANA
RE: COLLAPSE OF SOME BANKS AND MATTERS ARISING

The Council of The Institute of Chartered Accountants (Ghana) has noted with great concern the current developments in the banking industry with particular reference to the collapse of seven banks.

The questions many people (accountants and non-accountants) are asking are:

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?

The Council of the Institute wishes to assure the general public that the Institute has a formalised procedure to handle complaints against its members.

The Professional Standards and Ethics Committee of the Institute, in line with its mandate, has initiated the necessary enquiries on the matter and that an appropriate action will be taken if merit to the complaint is established.

The Council appreciates the concerns of the public and will do everything possible to safeguard public interest.

Issued by: Council, ICAG