Audit rules are clear says former ICATT boss

Accountants continued yesterday to steer clear of commenting on whether or not auditor Chanka Seeterram acted inappropriately by deciding to treat a $31 million loss suffered by Hindu Credit Union (HCU) in 2005, as a prior-year adjustment rather than in the profit and loss account where he agreed on Tuesday it should have been placed.

Krishna Seegobin & Co as well as Mike Hamlyn & Co said they did not want to comment until the Clico/HCU Enquiry was completed. Outlining the elements of best practice within the accounting profession in T&T, Anthony Pierre accountant at Anthony Pierre & Co and immediate past president of the Institute of Chartered Accountants of T&T (ICATT), said it is not acceptable for an accountant to falsify the accounts of a company.

“In T&T, we comply with International Financial Reporting Standards which require certain disclosure in the financial statements and which require consistent treatment of certain items within financial statements,” he said. Pierre added that auditors are bound to comply with the international standards of auditing “which are very clear in terms of how you deal with issues.”

Asked whether Seeterram committed any act of fraud, Pierre said: “As a member of ICATT, there is due process that can be followed in light of the information where an investigation can be conducted and disciplinary action be taken if it is finally determined that the member acted outside of the code of ethics,” he said.

Asked whether Seeterram could be fined, Pierre said: “I don’t want to prejudge the outcome of any investigation that may take place. If an investigation finds someone guilty of misconduct, the severity of the misconduct would have to be gauged and there are rules and regulations which would determine the penalty or disciplinary action to be taken against the member,” he said.

An accountant can be decertified in cases where there is gross negligence and misrepresentation of the facts and details of company transactions.