The South African Institute of Chartered Accountants’ (SAICA) Board has accepted KPMG’s offer to resign as SAICA’s external auditors.
SAICA said in a statement KPMG cited possible perceived independence concerns if they were to perform the 2018 audit as a result of the current SAICA-appointed Ntsebeza Inquiry.
The inquiry is looking into some of the former and current KPMG-employed Chartered Accountants and will be concluding shortly.
“All the parties believe this is in the best interests of SAICA, its members and KPMG.”
SAICA said it will now begin a tender process to appoint external auditors and its Board will table a progress report to its members at the Annual General Meeting on 26 June 2018.
Following the completion of the tender process, a Special General Meeting will be called to approve the appointment of the recommended audit firm, SAICA said.
The Ntsebeza inquiry, led by Advocate Dumisa Ntsebeza was established to investigate the conduct of SAICA’s employed by KPMG from January 2013 onward to determine if they acted in contravention to the SAICA code of Code of Professional Conduct, Fin24 previously reported.
The inquiry panel also includes Advocate Vuyani Ngalwana SC, Dr. Claudelle von Eck, Freeman Nomvalo and Malcolm Robert Johnston.
The inquiry was meant to conclude in April 2018, but Ntsebeza said the report would be released at the end of June.
A number of companies have dropped KPMG, mutual bank Finbind on Thursday announced in a notice to shareholders its board of directors could not justify “further association with KPMG”.
Last month the auditing firm lost three of its clients in two days.
These being Sibanye-Stillwater, ABSA and Redefine Properties.
The Auditor-General terminated its contract with KPMG and Gupta-linked Nkonki Inc in April. Auditor General Kimi Makwetu told Fin24 that the outcome of investigations into KPMG will determine if the AG would do business with the auditor again. — Fin 24