JOHANNESBURG-Absa has announced that it will drop KPMG as an external auditor.

In a shareholder statement released on Thursday morning (3 May), the bank said that its relationship with KPMG would cease on completion of the statutory and regulatory audit and reporting matters for the 2017 financial year – expected to be completed by 31 May 2018.

In response, KPMG South Africa said it was disappointed, but fully accepted the decision.

“We are very proud of the work that we have performed for Barclays Africa Group over many years, and of the diligence and professionalism of the team who served them,” it said.

“We have implemented far-reaching changes over the past seven months to all aspects of the firm, including governance, quality, and risk management. We work to further underpin the quality of our services and integrity of our professionals continues.

“We are confident the steps we are taking to change the firm are the right steps to restore trust in KPMG, and we remain resolute in our determination to achieve this goal.”

In April, Bloomberg reported that KPMG’s South African unit was flying-in trouble shooters from around the globe and hurriedly meeting clients to stem any further loss of business after becoming embroiled in three evolving scandals.

Over the past eight months, the auditor issued a public apology for work done for the politically connected Gupta family, withdrew the findings of a report about the country’s tax authority, and interrogated staff who signed off on VBS Mutual Bank’s accounts before it failed.

Article sourced from BusinessTech

Photo Credit- BusinessTech

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