Update on IRBA investigations into KPMG

Johannesburg, Friday, January 12, 2018 - The Independent Regulatory Board for Auditors (IRBA) investigation into audit firm, KPMG, is multi-faceted and has extended into a number of lines of investigation, beyond the initial investigation into the audits of Linkway Trading (Pty) Ltd and the SARS Report.

The IRBA investigation is completely independent of the Ntsebeza enquiry initiated by the South African Institute of Chartered Accountants (SAICA). At the time that SAICA indicated it would pursue an independent enquiry, the IRBA cautioned of possible confusion in the marketplace about the nature, scope and findings of two different investigations, or that the market may conflate the two. The IRBA reiterates that it has no involvement in the Ntsebeza enquiry and will continue its own investigations following its due process in accordance with the Auditing Profession Act (26 of 2005).

In the KPMG matters, the IRBA can confirm that one of the lines of investigation is nearing completion and will be tabled at the upcoming investigating committee, while others are progressing satisfactorily. In two matters, information which was requested from KPMG remains outstanding and the IRBA continues to engage with KPMG to obtain the information necessary to complete these investigations.

With respect to the SARS matter, the IRBA engaged with the SARS Commissioner and most of the information has been received subsequently from KPMG. The IRBA is confident that the additional information will be supplied in due course. This is consistent with the IRBA’s powers under its Act to request any information necessary to perform its investigations.

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More about the IRBA:

The IRBA is a public protection statutory body established to protect the financial interests of the public by ensuring registered auditors and their firms deliver services of the highest quality. It upholds audit firm independence to ensure that audit quality is such that it enhances the accuracy and credibility of financial performance reporting. In this way, the IRBA has an important role to play in building the reputation of South Africa as an investment market for both local and global investors and driving economic growth for the country.

The IRBA also registers suitably qualified accountants as auditors, who must adhere to the highest ethics standards, and promotes the auditing profession through the effective regulation of assurance conducted in accordance with internationally recognised standards and processes.