Credit Suisse discloses 'material weakness' in reporting procedures
Mar. 14, 2023 3:26 AM ETCredit Suisse Group AG (CS)By: Jessica Kuruthukulangara, SA News Editor41 Comments
- Credit Suisse (NYSE:CS) identified "material weakness" in its reporting procedures for FY22 and FY21, the bank said on Tuesday in its annual report, and is developing a remediation plan to address the same.
- The material weakness refer to the bank's failure to maintain an effective assessment process to identify material misstatement risks in its financial statements.
- "This could result in misstatements of account balances or disclosures that potentially would not be prevented or detected," Credit Suisse (CS) said.
- It is developing a remediation plan to address the material weakness, including strengthening its risk and control framework.
- The bank earlier delayed the release of its 2022 annual report due to last-minute questions from the U.S. Securities and Exchange Commission about revisions to FY20 and FY19 cash flow statements, as well as related controls. It did not disclose if the queries were resolved.
- Credit Suisse (CS) said its 2022 results released last month are not impacted by the material weakness.
- Earlier, as part of its restructuring, the bank reportedly considered selling parts of its equities business.