Embattled Auditing Firm KPMG Cuts Ties With SAICA

An investigator says KPMG should be forced to take responsibility for its role in VBS’s collapse. David Ritchie / African News Agency. PICTURE: BusinessLive

JOHANNESBURG: Auditing firm KPMG has resigned as external auditors for the South African Institute of Chartered Accountants (Saica).

KPMG has been under fire due to its handling of the Gupta family’s accounts, with the firm later changing its leadership.

The institute says KPMG has cited possible independence concerns if they are to perform the 2018 audit.

The Saica has instituted an inquiry into former and current KPMG-employed chartered accountants.

It’s for this reason that KPMG has stated that it can no longer function as external auditors for the institute.

The [Dumisa] Ntsebeza inquiry is looking into the conduct of several accountants, with a report expected at the end of July. The institute says it will now begin a tender process to appoint new external auditors.

KPMG has lost more than 10 major clients over the past several months, including Barclays Africa.