The Institute of Chartered Accountants, Ghana (ICAG) says it has begun an enquiry into the role of auditors in the collapse of the seven banks.

ICAG says it will take appropriate action against members who are found culpable in the collapse of these banks.

In a statement, ICAG said it “has noted with great concern the current developments in the banking industry with particular reference to the collapse of seven banks. The Council of the Institute wishes to assure the general public that the Institute has a formalised procedure to handle complaints against its members.” 

ICAG said, “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 move by ICAG follows concerns of the general public on why the external auditors of these banks could not pick up any signal during the audit process.

The Bank of Ghana last week revoked the licenses of five universal banks, namely, Royal Bank, Construction Bank, Sovereign Bank, Unibank and BEIGE Bank. 

According to the central bank, the action was taken due to the inability of some of the banks to meet existing minimum capital requirement.

Some of the troubled banks also faced liquidity issues while others obtained their licences through dubious means.

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