Credit Suisse has launched a review of its financial reporting after discovering "material weaknesses" that prevented the proper prevention of financial mis-statements.
The US Securities and Exchange Commission (SEC) raised concerns about the Swiss investment bank's categorisation of cashflows in 2019 and 2020.
Final publication of its annual report also stalled as a result of the SEC's concerns.
The bank's shares fell as much as 5% on Tuesday as a result of the report being delayed.
Credit Suisse is working on a plan to fix the issues and the most recent financial update is a "fair representation" of the bank's financial position.
Despite the bank saying that the most recent financial update was a fair representation of its financial position, Credit Suisse's bonds weakened to record lows after the announcement of the material weaknesses in the bank's financial reporting controls.
Credit Suisse reported that clients continue to withdraw cash.
The bank saw outflows of over CHF 110 billion ($120 billion) in the fourth quarter, with some liquidity buffers breached; however, according to the latest annual report, "outflows stabilized to much lower levels but had not yet reversed."
The annual report also stated that Credit Suisse's management did not design or maintain an effective risk assessment process to identify and analyze the risk of material misstatements in its financial statements.
The bank's management team is now working on a plan to address the weaknesses by "strengthening the risk and control frameworks."
While the report stated that Credit Suisse is working on fixing its financial reporting issues, the bank is still facing criticism, with one source stating that the bank was "battered by a string of scandals.
" The bank was forced to delay the publication of its annual report after the SEC raised concerns about the bank's financial statements, and it is hoped that this review marks a turning point in the bank's efforts to address these issues.