Regulatory board pushes ahead with independent KPMG probe

This follows Gupta leaks revelations that the company turned a blind eye to questionable practices.

KPMG SA logo. Picture: Facebook.

PRETORIA - The Independent Regulatory Board for Auditors (IRBA) has noted a decision by KPMG to replace several managers and withdraw its controversial Sars spy unit report, but says it will continue with its own independent investigation of the auditing firm.

KPMG announced on Friday that several senior managers had stepped down, including the board chairman and the chief executive.

The move follows Gupta leaks revelations that the company turned a blind eye to questionable practices, including the movement of money to pay for the family’s lavish Sun City wedding.

KPMG says it "fully understands" the criticism of the attendance of four KPMG partners at the Gupta family wedding in 2013.

"While the investigation concluded that their attendance was not a breach of auditor independence rules, we accept that the partners should not have attended this wedding," it adds in a statement.

The IBA says it can’t say how long its investigation of KPMG will take nor what the complete list of allegations will cover.

The statutory watchdog body says it is committed to performing a robust investigation as quickly as possible.

The board says its work with audit forms to strengthen independence and standards compliance is critical for the reputation of the profession.

Plans are underway to meet with the new KPMG management team to discuss remedial action programmes which will be monitored.

(Edited by Shimoney Regter)