Faizel Patel, Radio Islam News - 17-04-2018
A senior lecturer at the Wits School of Economic and Business Science says the accounting profession is searching for its soul after embattled auditing firm KMPG’s alleged misconduct.
The auditing firm suffered severe reputational damage since allegations emerged regarding the work it did for Gupta-linked companies and its role in the controversial SARS “rogue unit” report.
KPMG says it’s now waiting for the outcome of an investigation into the involvement of two former partners with VBS Bank.
Sipho Malaba and Dumi Tshuma tendered their resignations on Friday after facing disciplinary charges over failure to disclose financial interests with VBS Bank.
Speaking to Radio Islam, Wits University’s Lumkile Mondi says the accounting profession has suffered.
“The accounting profession is a very damaged career. But also the professionals, such as the partners at KPMG have not really given the South African public much belief that the profession is a clean profession and a profession that we should encouraged our children to go, because it’s rotten all the way from the top.”
KPMG says it has loss several clients and partners in recent months due to a loss of confidence in the firm.
The auditing firm will be reviewing almost 200 audit files from the past year and a half as part of a plan to restore confidence in the company.