'Credibility of accounting, auditing profession in SA in the gutter'

Auditor General Kimi Makwetu announced earlier on Tuesday that his office is terminating the contracts of both KPMG and Nkonki.

FILE: Auditor-General Kimi Makwetu. Picture: Christa Eybers/EWN.

JOHANNESBURG - Auditor General Kimi Makwetu says the overall credibility of the accounting profession in South Africa is in the gutter.

Makwetu announced earlier on Tuesday that his office is terminating the contracts of both KPMG and Nkonki.

He says recent media reports relating to the external audit of VBS Mutual Bank and the conduct of KPMG audit partners are some of the reasons that prompted the decision to withdraw all KPMG audit mandates with immediate effect.

Makwetu says practitioners need to fix systemic problems as a matter of urgency.

“The overall credibility of the auditing and accounting profession in South Africa is in the gutter and I think we need to look at the bigger picture and look at what it is doing to all of us as auditors and accountants. It’s possibly about time that all those practitioners stand up and deal with this matter decisively.”

The Auditor General says accounting practitioners need to fix systemic these problems as a matter of urgency.

LISTEN: KPMG and Nkoni contracts terminated