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An accountants’ professional body is proposing tough rules to tame rogue auditors and regulate bookkeepers.
In a bid to weed out errant practitioners, the Institute of Certified Public Accountants
of Kenya (Icpak), said it was reviewing the Accountants Act to “regulate the entire value chain of the profession”.
The proposed regime will bring aboard bookkeepers and other entities or individuals charged with preparing financial statements.
Icpak chairman Benson Okundi said the review was expected to strengthen professionalism among accountants and enhance accountability in auditors following increasing cases of professional misconduct.
“The proposed laws will have stiffer penalties on cases of professional misconduct and seek to regulate the entire accountancy value chain, which runs from bookkeeping, preparation of financial statements to auditing,” Mr Okundi said during a press briefing in Nairobi Wednesday.
The institute said there were six active cases of professional misconduct that the disciplinary committee was reviewing, but declined to reveal them. Over the last two years, the committee has dealt with over 20 disciplinary issues where appropriate measures have been meted out.
“A few cases have been escalated to the High Court and at this point in time it will be prejudicial to discuss these cases,” Mr Okundi noted.
The accountants, however, said that in some instances auditors came under pressure from management to falsify accounts.
“Such people are liable for professional misconduct if their work does not follow international standards on auditing. The management will also have to answer separately for abetting accounting misconduct,” Icpak said.
DISMISSED CLAIMS
Culpable accounting firms or auditors are liable to pay a fine of Sh5 million or five per cent of the value of their turnover and/or serve 10 years in jail.
Last month, accounting firm Deloitte dismissed claims of abetting fraud at firms it has audited.
Meanwhile, the accountants have urged the government to expedite the development of the national and county government asset registers to ensure due diligence in resource management at the two levels. The lists will also help minimise or eliminate the pilferage or plunder of public assets.
