Ntsebeza inquiry wrapping up auditing probe
The Ntsebeza inquiry, which is investigating the alleged misconduct of South African Institute of Chartered Accountants (Saica) members who worked for professional services firm KPMG, says it is entering the final stages of its work and will soon start writing its report.
The panel has until the end of June to submit its report.
Saica members were being investigated for alleged involvement in the Gupta accounts and the compilation of the report on the South African Revenue Service’s (SARS’s) “rogue unit”.
KPMG found itself embroiled in allegations of state capture involving the Gupta family. It also came under fire for its role in the SARS report, especially after it withdrew only the findings and conclusions but not the entire report.
This left the firm in a precarious position and it has been bleeding clients. The public hearings started in February.
Despite the interest in the Gupta and SARS matters, the Ntsebeza inquiry said its terms of reference went beyond this. It said other submissions included how an executor had dealt with a deceased estate, allegations of fraud being ignored, financial statements not prepared in accordance with International Financial Reporting Standards, incorrect financial statements and an irregular payment that had been condoned.
“We are sensitive to the fact that the auditing profession is under immense pressure and that many of KPMG’s clients are awaiting our report. Indeed, the world is watching,” said Dumisa Ntsebeza, the senior counsel who heads the inquiry. But he indicated his panel had not received complete co-operation from all of the parties and they were disappointed by the lack of understanding of their role.
The inquiry was given the task of finding the facts and determining whether there was prima facie evidence pointing to a need for Saica’s disciplinary processes to kick in.
“It is not within the ambit of our mandate to determine guilt or not. That’s for Saica to decide, and in the case of registered auditors, it would be in the hands of Irba [Independent Regulatory Board of Auditors],” said Ntsebeza.
Irba is conducting its own investigation into KPMG’s work.
WE ARE SENSITIVE TO THE FACT THAT THE AUDITING PROFESSION IS UNDER IMMENSE PRESSURE