Analyst wants establishment of PCAOB as check on auditors
Market analyst, Dialectic Africa has called for the establishment of the public companies Accounting Oversight Board (PCAOB) to extract real value of funds expended on public companies auditing.
The company said that establishment of PCAOB and other regulatory initiatives would ensure greater value for Africans and the companies listed on African exchanges.
In its recent publication released Wednesday October 4th titled “Africa needs better auditors: fees are rising and values are dropping” noted that auditors services have failed to positively impact the lives of users of the audit reports, while further empowering their clients.
The Analysts also further recommend for law hindering public interest entities from choosing their auditors, fixing their remunerations and paying them directly.
It further called for a law that would compel the firms to make an annual contribution into the Audit Malpractice Fund, a function of the number of and market capitalization of all PIE as at year-end managed by an audit firm. Among other recommendations.
According to Dialectic Africa, the reform becomes imperative to reshape Africa’s business environment and return value to the people , through creation of new crop of auditors that charge lesser fees, at the same time encouraging growth and development.
The report pointed “Auditors get paid by the client but, the investing public is expected to believe the audited financial statements meet certain required and expected standards of honesty and transparency.
Reality of events across the world clearly shows that audit firms have pledged their loyalty to the paying client and not the users of the financial statements they audit”
