The Institute of Certified Public Accountants in Israel will
postpone until the end of February the coming into force of Opinion
No. 61, establishing a new wording for the report of the auditors
annexed to financial statements. This, the second postponement, was
occasioned due to the delay in obtaining an opinion on the matter from
Michael Ben-Yair, Legal Advisor to the Government.
Ben-Yair was asked to rule on the dispute between the ICPAI and the
Securities Authority, on the question of whether the new wording reduces
auditors' accountability and contravenes the Auditor's Mode of
Performance Regulations. On resolving to approach Ben-Yair, the
Auditors' Council ordered the Institute to suspend the coming into force
of the Opinion until February 3rd.
Haim Klugman, Director General of the Ministry of Justice and
Chairman of the Auditors' Council, said today (Wednesday), that
Ben-Yair would need at least another three weeks to complete his
opinion.
Senior accountants today defined the resulting situation as a
disgrace and an ongoing injury to the standing of the profession and
the Institute.
"The differences of opinion are not material, and could have been
resolved in a civilised manner over a cup of coffee", said one CPA. It
was because this did not happen, he claims, that the matter also assumed
aspects of a personal confrontation and a power struggle.