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Business News of Thursday, 6 December 2012

Source: myjoyonline.com

SEC awaits passage of new securities law for change of external auditors

The Securities and Exchange Commission, SEC is awaiting the passage of the revised Securities Industries Law before it can direct listed companies to change their external auditors.

This comes after the Bank of Ghana and the National Insurance Commission directed their respective players to change the external auditors they have been working with for more than five years.

Following that were calls for the SEC to also follow-suit and the Director General, Adu Anane Antwi has welcomed the proposal. He however explains to JOY-BUSINESS it can be implemented only after the revised Securities law comes into force.

“Auditors role has come to the fore these days against the fall of Enron and others. So to ensure that people have confidence in the audit reports that are issued out, it is key the independence of the audit firms is also safeguarded. This is especially because the idea is if one auditing firm audits a firm for far too long they become so close to the company which affects their independence” he said.

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