Review of KPMG audit reports is necessary
THE Competition Commission recently revealed collusion among major banks in the foreign exchange market.
Lately these banks’ auditor, KPMG, allegedly manipulated audit reports in favour of Guptaowned companies thereby contravening the Auditing Profession Act. I smell a rat. KPMG may have ignored risks of material misstatements by intentional omission.
Former US president Grover Cleveland said: “A man is known by the company he keeps and also by the company from which is kept out.” This hits the nail on its head. The question is why KPMG executives were willing enablers of such misrepresentation, knowing that it would hurt the firm’s reputation if it was exposed?
Criminal charges must be laid. There’s prima facie evidence of corruption that must be referred to the authorities for investigation.
It may bring to light other illegal activities of money laundering and tax evasion. These ethical issues appear to be orchestrated in cahoots with other actors central in the shenanigans badly affecting SARS.
This state of affairs demands that the Independent Regulatory Board of Auditors take appropriate action against KPMG relating to the false or misleading information of their financial statements.
This must include a review of all audit reports of its clients.