Regulatory Alerts2004-07-01
COBAC Instruction I-2004/01 on the Compatibility of Certain Activities with the Audit Mandate of Credit Institutions
The Commission Bancaire de l’Afrique Centrale (COBAC) issued Instruction I-2004/01 to delineate the statutory audit mandate of credit institutions by explicitly prohibiting advisory and management-interfering activities while permitting non-conflicting support functions. The directive establishes a clear framework distinguishing incompatible tasks, such as day-to-day accounting preparation and human resources management, from compatible ones like tax return assistance and internal system evaluations. It further requires auditors or institutions to obtain COBAC's prior opinion on any unlisted activity before concluding service contracts, thereby preserving auditor independence and the reliability of financial statements.
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