Another day, another KPMG scandal

[ShaunSA]

https://www.biznews.com/undictated/2017/08/17/another-kpmg-scandal/

Ian Fleming, the man who created James Bond, told us that in the spying game “Once is happenstance. Twice is coincidence. Three times is enemy action.” In business, I’m not sure how many times companies can afford to slip, but KPMG is surely coming to the point of no return.

 

[ShaunSA]

Color me surprised.

 

[Tikkop]

https://www.ft.com/content/0f0393de-81d9-11e7-a4ce-15b2513cb3ff

*Awaits HavocXphere's enlightenment of how the media and us MyBB'ers cannot fully comprehend the complexities of an audit, therefore we should relax with the KPMG crucifixion.

 

[Cius]

Hmm, I have questions. Is it the audit companies responsibility to independently confirm the valuation of assets on a balance sheet? Sounds like they where lied to the same way the investors where. I get that auditors are meant to find discrepancies to stop this type of thing but how far does that go without the cost of audit becoming prohibitive? The regulators clearly thought KPMG should have picked this up in the audit hence the fine but I kind of also feel for the auditors. I have done a lot of internal and external audits as an IT person and they are very reliant on the data we give them with little opportunity to independently verify what I tell or give them.

 

[Tikkop]

Hmm, I have questions. Is it the audit companies responsibility to independently confirm the valuation of assets on a balance sheet? Sounds like they where lied to the same way the investors where. I get that auditors are meant to find discrepancies to stop this type of thing but how far does that go without the cost of audit becoming prohibitive? The regulators clearly thought KPMG should have picked this up in the audit hence the fine but I kind of also feel for the auditors. I have done a lot of internal and external audits as an IT person and they are very reliant on the data we give them with little opportunity to independently verify what I tell or give them.

The auditing standards outline how and when other experts should be used when the audit firm itself does not have the resources or capabilities to perform a complex valuation, such as in the case at hand.

The auditor still then have to audit the work of the experts. If the auditor cannot do it, then the auditors isn't fit and proper to perform the audit and some other auditor with the capabilities should perform the audit engagement.