Auditor-General sticks with KPMG
The Auditor General of SA (AGSA) will continue to use KPMG SA's services pending the outcome of investigations into the work done for the controversial Gupta family and the SA Revenue Service report into the so-called rogue unit.
Auditor-General Kimi Makwetu and his team met with KPMG SA‚ led by new CE Nhlamu Dlomu.
Following the meeting it was decided that the AGSA would continue to secure KPMG's services but only limited to the audits currently allocated to the firm.
"This arrangement will be in place as an annual allocation rather than a two-yearly allocation of audit work‚ as is current practice with all firms we contract with‚" the AGSA said on Friday.
"This will be reviewed subject to the outcome of the pending investigations."
KPMG International and the Independent Regulatory Board of Auditors (Irba) are currently probing KPMG SA's work.
KPMG‚ in a bid to do some damage control‚ have already met with former finance minister Pravin Gordhan and his former deputy Mcebisi Jonas. It has also met with some of the former SARS officials implicated in the rogue unit report.
The AGSA said through its contract work allocation programme to private audit firms‚ it has an interest in the matters that were raised in the report titled "KPMG South Africa leadership changes and key findings arising from KPMG International Investigation".
The report led to a number of senior members of KPMG SA resigning.
The AGSA allocated audits to KPMG to perform on its behalf where it expressed an opinion on financial statements that were largely the AG's primary responsibility.
"To this end‚ we felt it necessary to engage with the leadership of KPMG SA on their report as one of those that purchase their services‚" the AGSA said.
It said it was assured that the events that led to the matters in the report were "not indicative of a systematic breakdown of risk management and audit practice disciplines".
The AG was also assured that the firm's partners continued to be independent of the entities they audit.
"They strive to improve on their oversight processes while they recognise the seriousness of the weaknesses that were identified in the report‚" it said.
The AGSA said the outcome of the Irba and KPMG International investigations will help answer remaining concerns raised with KPMG SA.
- BusinessLIVE