According to Francisco Ovares, president of the Institute of Chartered Accountants, the red figures in the financial statements of some companies could lower banks’ profits in $ 140 million.
Ovares said the issue has been analyzed by the Superintendent of Financial Institutions (SUGEF) and used Yanber and Coopeaserrí as examples of companies that face financial problems. The names of the banks that have loans or transactions with these companies was not revealed.
Banks will have less profits or losses for this period and we are interested in this because there are unethical accountants,”
Part of the problem is that accountants give official attestation; therefore, banks must believe their reports, even if the company goes bankrupt a month or year later.
This is especially harmful because
companies make accountants sign false information such as availability of cash, inventories, accounts receivable, among others things, in order to collect important credits,”
which causes banks to lose their investment.