× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Unethical auditors face Sh5 million fine

NEWS
By Nicholas Waitathu | February 5th 2015

NAIROBI: Accountants implicated in professional misconduct could be slapped with a Sh5 million fine and have their practicing licences revoked for a period of 10 years, a new bill recommends.

The Institute of Certified Public Accountants of Kenya (ICPAK) warns that auditors will be disciplined by an independent tribunal to be formed comprising of a high court judge and legal practitioners in addition to experts drawn from the accounting profession.

ICPAK Chairman Benson Okundi said auditors will be dealt with if the new Accountant Amendment Bill 2015 currently under consultation is passed in Parliament. He said the new tough laws are informed by increasing cases of professional misconduct among accountants.

Okundi said accountants will find it difficult to operate in the local market once the bill is enacted into law. “We have proposed radical changes in the accountancy profession with a view of ensuring client concerns are well attended to. As players in the industry we have been accused of unethical conduct. We are currently refining the Bill before handing it over to the National Treasury in March this year,” said Mr Okundi.

DISCIPLINARY CASES

Shareholders accuse ICPAK of failure to discipline those violating accountancy principles. The tribunal will replace ICPAK’s current disciplinary committee.

Currently, the committee relies on the provisions of sections 30, 32 and 33 of the Accountants Act to handle the cases. “In the last two years, the committee has dealt with more than 20 disciplinary cases and where appropriate, disciplinary measures were taken as prescribed by the Accountants Act,” he said.

He said, currently, there are six active cases under investigation. Rashid Mohamed, a board member of the institute said over and above punishing individual accountants the same will be extended to transaction advisers.

Share this story
Zuku unveils new TV channels to offer more choice to viewers
Zuku, the home of entertainment and communication services, has today launched new and refreshing channels on its platform mainly directed at sports fans.
Absa Bank net profit for 3 months up 24pc
The performance was mainly driven by growth in interest income, particularly in the small and medium enterprises.
.
RECOMMENDED NEWS
Feedback