streetwise wrote:ICPAK ..they saw nothing wrong with uchumi being run down by their
Own !!!!!
Or it it just Kenyans way of doing things ???
KBA - Kenyan Bankers Association is a lobby group of banks. Banks contribute the membership fees and essentially it is there to serve their interests.
ICPAK - Their mandate is not to regulate accountants or auditors. The Council Members of ICPAK are accountants. So essentially they promote the professional standards and lobby issues on behalf of their members. They get membership fees from the registered accountants/auditors.
Auditors - They are not the management and work as directed by the directors who appoint them, guided by the auditing standards and reporting standards, and using information mostly provided by the management. Their work is not to investigate fraud/compliance/poor management practices etc. In Kenya they are also not required to report on the financial controls unlike the US where there are SOX regulations.
So the questions on who to blame ideally should go to those in charge of governance and regulation, who are essentially the "police". That is the CBK, CMA and directors for listed companies and directors for private companies.
Auditors also need to be regulated too. Introduction of a independent government funded body similar to PCAOB in the US or FRC in the UK needs to be done. As it is they are not independently regulated in Kenya.
Same goes for NSE. NSE is a business like any other that is regulated by rules it issues to its members who pay their dues through either annual fees or brokerage fees. You cannot blame them for the Chase/Imperial bank bonds. CMA is the one to answer any questions as the regulator.
Investment philosophy development in progress...