African bank and Deloitte clash over accounts

African bank and Deloitte clash over accounts

Auditor forced to qualify opinion at African Development Bank

Deloitte is in dispute with its audit client, the African Development Bank,
after the firm refused to approve its accounts unconditionally for the first
time in the bank’s history.

The firm had to qualify its opinion on the ADB’s accounts because the bank
refused to apply an accounting rule that has come in under new international
accounting standards.

The bank claimed the rule would misrepresent its financial position, the
FT reported.
One standard in particular -IAS 32 – would transform the capital on the bank’s
balance sheet into a liability.

The bank was set up in 1964 and provides loans to 77 countries.

Charles Boamah, director and controller at the bank, said implementing the
rule would ‘seriously misrepresent the true nature and substance of the
relationship between the member countries and the bank’.

Deloitte declined to comment on the disagreement, citing client
confidentiality.

Related Articles

FRC fines reach record high after 24% increase this year

Audit FRC fines reach record high after 24% increase this year

9h Alia Shoaib, Reporter
PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

Audit PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

2d Alia Shoaib, Reporter
New FRC Corporate Governance Code focuses on culture and diversity

Audit New FRC Corporate Governance Code focuses on culture and diversity

3d Lucy Skoulding, Reporter
PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

Audit PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

2w Alia Shoaib, Reporter
FRC to investigate KPMG’s Conviviality audit

Audit FRC to investigate KPMG’s Conviviality audit

2w Alia Shoaib, Reporter
June news roundup with Alia Shoaib

Audit June news roundup with Alia Shoaib

3w Alia Shoaib, Reporter
FRC opens investigation into Deloitte’s audits of SIG

Audit FRC opens investigation into Deloitte’s audits of SIG

3w Alia Shoaib, Reporter
PwC auditor spent just two hours on BHS audit, says chairman

Audit PwC auditor spent just two hours on BHS audit, says chairman

4w Alia Shoaib, Reporter