By Duruthu Edirimuni Chandrasekera
The Institute of Chartered Accountants Sri Lanka (CA) is to make representations to the Securities and Exchange Commission (SEC) on ‘whistle blowing’, officials say. ”We are in the process of making representations to the SEC to find the right balance in terms of whistle blowing,” a CA official told the Business Times.
He added that while they are awaiting SEC’s draft legislation which aims to incorporate fresh laws mandating auditors to bring any financial irregularities to the SEC, the CA is in the process of reviewing their Ethics Code, to be out next year and that they want to incorporate the whistle blowing elements into this code.
He pointed out that whistle blowing by accountants and auditors are filled with ethical challenges and that they are sensitive to mandated whistle blowing.
“Auditors have confidentiality obligation not to divulge client information,” he said, adding that they are supposed to seek out and find instances of materially false and ambiguous financial statements. But the SEC says that when the cost of non-disclosure is potentially damaging to individuals or society, discretion must be overridden. They say that similar laws are adopted in countries such as Malaysia and the US.
www.sundaytimes.lk
The Institute of Chartered Accountants Sri Lanka (CA) is to make representations to the Securities and Exchange Commission (SEC) on ‘whistle blowing’, officials say. ”We are in the process of making representations to the SEC to find the right balance in terms of whistle blowing,” a CA official told the Business Times.
He added that while they are awaiting SEC’s draft legislation which aims to incorporate fresh laws mandating auditors to bring any financial irregularities to the SEC, the CA is in the process of reviewing their Ethics Code, to be out next year and that they want to incorporate the whistle blowing elements into this code.
He pointed out that whistle blowing by accountants and auditors are filled with ethical challenges and that they are sensitive to mandated whistle blowing.
“Auditors have confidentiality obligation not to divulge client information,” he said, adding that they are supposed to seek out and find instances of materially false and ambiguous financial statements. But the SEC says that when the cost of non-disclosure is potentially damaging to individuals or society, discretion must be overridden. They say that similar laws are adopted in countries such as Malaysia and the US.
www.sundaytimes.lk
No comments:
Post a Comment