KPMG statement in relation to Nedbank changing auditors

rpm

rpm

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Statement by KPMG:

KPMG South Africa notes the announcement today from Nedbank Group Limited and Nedbank Limited that the firm will be rotated off as its external auditor.

The decision is part of the industry wide move towards mandatory audit firm rotation, which seeks to ensure objectivity and robust auditing services are provided to all public interest entities. Going forward, this will likely involve a higher degree of change among established auditing relationships than we have been used to.

Executive Chairman of KPMG SA, Professor Wiseman Nkuhlu said: “It is always disappointing to lose a client, but we remain very proud of the work that we have performed for Nedbank over many years, and of the diligence and professionalism of the team who served them.

KPMG itself is a very different business from a year ago, as we have implemented far reaching changes to all aspects of the firm including; governance and leadership, the client roster, quality as well as culture and ethics. I am confident we are taking the right steps and that this is being recognised by clients.

Our readmission earlier this month to membership of BLSA was a welcome recognition of the changes we are making and has bolstered our determination to continue taking all measures to restore trust in the firm.”
 
rpm said:
Statement by KPMG:

KPMG South Africa notes the announcement today from Nedbank Group Limited and Nedbank Limited that the firm will be rotated off as its external auditor.

The decision is part of the industry wide move towards mandatory audit firm rotation, which seeks to ensure objectivity and robust auditing services are provided to all public interest entities. Going forward, this will likely involve a higher degree of change among established auditing relationships than we have been used to.

Executive Chairman of KPMG SA, Professor Wiseman Nkuhlu said: “It is always disappointing to lose a client, but we remain very proud of the work that we have performed for Nedbank over many years, and of the diligence and professionalism of the team who served them.

KPMG itself is a very different business from a year ago, as we have implemented far reaching changes to all aspects of the firm including; governance and leadership, the client roster, quality as well as culture and ethics. I am confident we are taking the right steps and that this is being recognised by clients.

Our readmission earlier this month to membership of BLSA was a welcome recognition of the changes we are making and has bolstered our determination to continue taking all measures to restore trust in the firm.”
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Today must be yesterday, when KPMG think we were born.
The high lighted para must cast doubt on the Professor's intelligence and integrity.
 
Aren't leaders of disgraced companies expected to commit harakiri anymore? This one even thinks we care that they've been dropped by Nedbank. Go help someone steal their clients money somewhere else, far away, where we don't have to read your name anymore..
 
The decision is part of the industry wide move towards mandatory audit firm rotation
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and I'm guessing not many companies are rotating to KPMG?

KPMG itself is a very different business from a year ago, as we have implemented far reaching changes to all aspects of the firm including; governance and leadership, the client roster, quality as well as culture and ethics.
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Auditing firms by their nature already have very strict ethical and legal documents such as conflict of interest documents that staff have to sign and agree to. By KPMG admitting there was changes made, doesn't mean the rules didn't exist, it just means that they weren't enforcing these rules on their staff. KPMG should have taken legal action against the staff who broke these signed legal contracts. By not doing this KPMG themselves are not following their ethical legal duty but instead are just involved in a cover up to limit negative PR which in turn just brings the whole audit industry in this country into disrepute.
 
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KPMG has lost so much credibility. They were so deep in the Gupta's pockets it was not even funny. As an auditing firm you have one job essentially, and KPMG sold out for money. Yes I know it was individual senior people but if it is possible for a few individuals to subvert the process so dramatically then you have a structural issue anyways. Have fun dealing with the consequences KPMG.
 
ForceFate said:
He was brought in to steady the ship.
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Putting a spin on the real reason why KPMG lost the business will not do that for him or KPMG. They need to do a Sunday Times, but better. Or accept that it will be a big three rather than a big four.
Not that the other three are much better. They are just keeping their heads down, and reflecting that 'there but for the grace of God go I'. The old adage "He who pays the piper calls the tune" puts it well. The auditors are NOT independent of the companies they audit: they depend on those companies for their income. So they do not like to upset them.
 
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