Credit Suisse acknowledged in its 2022 annual report having detected a “material weakness” in the entity’s internal control of financial reporting and recognized losses.
Credit Suisse acknowledged in its 2022 annual report that it had detected a “material weakness” in the entity’s internal control of financial reporting and that it is developing a plan to correct it, including strengthening the control and risk framework.
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The Swiss bank had delayed the publication of its 2022 annual report last week, after being warned at the last minute about technical issues by the United States Securities and Exchange Commission (SEC).
In this sense, “after finishing the conversations with the SEC”, Credit Suisse has confirmed its results for the year 2022, which showed net losses of 7,293 million Swiss francs (7,381 million euros), compared to the ‘red numbers’ of 1,650 million francs (1,670 million euros) of the previous year and the worst result of the Swiss bank since the financial crisis of 2008.
In its annual report for the last year, the entity acknowledges that the evaluation carried out by the board of directors has concluded that the entity’s internal control over financial information “is not effective” and warns that this “material weakness” could give rise to to a misstatement in Credit Suisse’s financial statements.
Accordingly, auditor PricewaterhouseCoopers (PwC) has noted that Credit Suisse did not design and maintain an effective risk assessment process to identify and analyze the risk of material misstatement.
In this sense, The Swiss entity has indicated that it is developing a plan to address and remedy the aforementioned material weakness, including strengthening the risk and control framework.
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