Following sanctions imposed on seven audit firms and eight practitioners, The New Times has learned that missing audit procedures, unsupported audit opinions, and failure to act on previous recommendations were among the key concerns identified by the Institute of Certified Public Accountants of Rwanda (ICPAR).
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The shortcomings resulted in penalties ranging from fines and temporary suspensions, to permanent withdrawal from practice.
Lack of audit procedure manuals
Some sanctioned firms reportedly lacked essential manuals guiding how audits should be planned, conducted, and reviewed.
These include procedures for accepting clients, conducting audit engagements, and ensuring that completed work meets professional quality standards.
Without proper procedures and documentation, a firm may struggle to demonstrate that an audit was conducted thoroughly and in line with professional standards.
Unsupported audit opinions
An audit opinion reflects an auditor’s conclusion on whether an organisation’s financial statements are fairly presented.
However, a source familiar with the matter said some firms were unable to provide sufficient evidence and working papers to support the opinions they had issued when ICPAR reviewed their files.
Failure to produce supporting documentation may raise questions about whether enough audit work was conducted before the financial statements were approved.
Overreliance on tax advisers
Some auditors were also found to have relied heavily on financial statements prepared by tax advisers without conducting their own independent checks.
This practice, commonly described as "rubber-stamping,” occurs when an auditor signs or approves financial statements without obtaining enough evidence to support their opinion.
Tax advisers may prepare accounts or support clients with tax compliance, but the auditor remains responsible for independently reviewing the financial statements before issuing an audit opinion.
Failure to address previous recommendations
Repeated failure to address weaknesses identified during earlier quality reviews may lead to stronger sanctions.
According to a source familiar with the process, this contributed to the permanent withdrawal of ITAU Auditors Ltd’s right to practise, after the firm failed to implement recommendations issued following reviews conducted in 2019, 2022 and 2025.
Auditors are expected to prepare remedial plans and demonstrate that they have addressed concerns raised by ICPAR.
What this means
ITAU Auditors Ltd received the most severe sanction, with its right to practise permanently withdrawn.
One of its practice certificate holders, Ambrose Mutuku Nzamalu, also had his right to practise permanently withdrawn and was suspended from ICPAR membership for two years, until July 2028.
Permanent withdrawal of a practice certificate means the auditor can no longer provide public audit services or sign audit opinions. However, after serving any membership suspension, the individual may remain an ICPAR member and work in other accounting or finance roles that do not require a practising certificate.
A practising certificate is issued by ICPAR and renewed annually, subject to the practitioner meeting the institute’s professional and regulatory requirements.