The Chartered Accountants Regulatory Board is awaiting the outcome of a Central Bank investigation into the collapse of Bloxhams stockbrokers before it will make a decision about looking into Deloitte’s role in the debacle.
A spokesperson for the board said it has not yet begun an investigation into Deloitte, but that once the Central Bank investigation ends relevant information will form the basis of an inquiry into Bloxhams.
“The Chartered Accountants Regulatory Board is aware that an investigation into matters at Bloxham is currently being conducted by the Central Bank,” the board spokesperson said.
“In these circumstances it is customary, in order to avoid duplication of processes, to await the outcome of such investigation, following which any relevant information relating to auditors may be disclosed by the Central Bank to the Chartered Accountants Regulatory Board under the relevant provisions of the Central Bank Act 1942.
A spokesperson for the Central Bank said: “An extensive investigation is actively continuing and once concluded, decisions regarding any possible future enforcement options will be made,”
The regulator is investigating but has not committed to publishing any report on the failings that led to collapse of the country’s oldest stockbrokers two years ago.
“In these circumstances, The Chartered Accountants Regulatory Board has not yet commenced an inquiry in respect of Deloitte’s audit of Bloxham,” the board spokesperson said.
Deloitte were the external auditors of Bloxhams and failed to uncover any inaccuracies in the firm’s positions up to when the firm collapsed.
It subsequently emerged that there had been an accounting misrepresentation of trading losses of €2.6m which had been incorrectly recorded as an asset of the firm.
Deloitte also found itself at the centre of a probe into a £200m (€242.7m) hole at the heart of RSA Ireland’s accounts.
The Central Bank has called senior executives from top accountancy firms to demand an improvement in auditing standards of financial institutions.
It is understood these discussions have taken place over the past few months.
The Central Bank declined to comment.
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