Twin evils of bank going concern secrecy
by Jonathan Njoku
International Journal of Critical Accounting (IJCA), Vol. 6, No. 3, 2014

Abstract: This paper aims to address what it sees as twin evils of bank going concern secrecy. The statutory bank auditor in line with SAS 59 evaluates client going concern through the audit risk model. Nonetheless, frequent cases of audit failure for banking firms suggest the need to strengthen the audit risk model-based standards. Critically, the investing public face twin evils of bank going concern failure. On the one hand, bank supervisors refuse to share knowledge about bank financial condition publicly. On the other hand, bank auditors with responsibility to warn the public about bank going concern threats follow model standards that appear not to work. The twin evils commend the feasibility of the auditor borrowing the surveillance approach of the bank supervisor. Knowledge of what is known placed with the statutory auditor effectively overcomes the public secrecy of bank supervisory auditor, enabling the independence of the statutory auditor to place it at the public domain.

Online publication date: Sat, 30-Aug-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Critical Accounting (IJCA):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com