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Financial sector regulator called for banks and their auditors to work closely to ensure banks’ financial statements reflect their true position.
Central Bank says this will help enhance the reputation of banks among the industry and customers.
The bank says working closely will help the industry tackle difficult areas like adequacy of capital, loan losses provisions and fair value accounting for traded assets.
External auditors don’t provide guarantees on the future viability of a banking business or the efficiency and effectiveness of management.
They give an opinion on the truth and fairness of the accountants to shareholders.