Regulators should be Introduced with Extra Accounts by Banks.
Accountancy age readers have provided their opinions on the provision of additional set of accounts for regulators by banks.
There held a poll where 94 percent out of 50 polled failed to inform their users accurately regarding the financial condition of banks. The majority clearly agreed on the fact that audited accounts visibly fail at giving away the information properly regarding the ongoing financial condition of the banks to their users. Whereas the remaining 6% are concerned, they believe that international accounting standards are quiet suitable and applicable to the banks in this regard.
It is the duty of auditors to maintain the bank’s balance sheets and keep an account of the risks that may accumulate the financial system of the banks. While explain the crises, the Parliamentary Commission on Banking Standards (PCBS) explained it has been the fault of these auditors who didn’t perform their duty up to the mark.
Previous month, The Parliamentary Commission on Banking Standards (PCBS) told that auditors failed miserably in finding out the risks which harrowed bank’s balance sheets. Moreover, auditors merely acted as “cheerleaders” once they were set accountable for the failure. Therefore, there must be an additional set of accounts for regulators have been increased by the banks.
The group of major entities who can keep a check on the risks and factors that can accumulate the banking system unfortunately they failed to do so. In order to overcome the harrowing effects in the banking system, the government has taken valuable measures. After the series of scandals involving the industry, the government has enforced a group since bankers, regulators, investors and auditors all failed to comprehend the harrowing risks which the banking industry may suffer from.
The Parliamentary Commission on Banking Standards (PCBS) performed detailed analysis on the relationship between banks and auditors and found out that auditors when set questionable act as “cheer leaders”, they are rarely available as the last line of defense against banks’, moreover they are not decisive and do not expose the risks found in the balance sheets.
Therefore, accountancy age readers provide the urge to have an additional set of accounts for regulators produced by the banks.