Errant accountants on the rise as ICPAK probes fresh cases

The accountants body Institute of Certified Public Accountants of Kenya (ICPAK) has launched investigations into six new cases, adding to the eight the organisation was already looking into.

In an update, ICPAK said the new cases were reported between 2017 and 2019 while five are under mediation for alternative dispute resolution.

“There are six matters that are at the preliminary investigations stage before they are booked at the inquiry stage,” the disciplinary cases update read.

Since 2014, ICPAK has closed six cases involving its members. Of the old eight cases, three are at the committee stage and two are due for hearing including the case of former Uchumi Supermarkets executives Jonathan Ciano and Chadwick Omondi. Three are due for determination.

ICPAK has been handling cases involving auditors and some of its members accused of their roles in cooking books, a trend that has contributed to massive investor losses, especially in publicly-traded firms.

Chief Executive Edwin Makori earlier this year said 16 cases were under due process and the institute would provide a report on firms and individuals found culpable.

Most of the big and small audit firms have also been investigated in the wake of major scandals, facing accusations that they either actively colluded or failed to highlight the frauds.

Deloitte & Touche and PricewaterhouseCoopers (PwC) are among the audit firms that have been investigated after handling accounts of companies that were later revealed to have defrauded shareholders.