King defends auditing firms' consulting gigs
Corporate governance maven sees value in 'cross-pollination'
There may be calls for accounting firms to divest from consulting work to solve conflict-of-interest issues, but corporate governance expert Professor Mervyn King thinks that is not the best scenario for the sector. The calls come after a string of international accounting scandals involving groups such as Steinhoff. Fingers have been pointed at auditing firms for not detecting alleged fraud. King, a Unisa professor extraordinaire and former Supreme Court of Appeal judge, is known for his King codes, the benchmark for corporate governance in SA. Commenting on the concentrated nature of the auditing industry, King said that without the big four - EY, KPMG, PwC and Deloitte, which he refers to as the "final four" as it is unlikely any other accounting firms will reach their size and scale - it would be difficult for multinationals to operate. "We know the world is physically round but factually it's flat, borderless and electronic ... you have multinational enterprises operating in ma...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.