KPMG International Audit Firm in the Republic of South Africa (South Africa) is at the center of scandal related to the substantive remarks on the quality of its audit conducted for VBS Mutual Bank African bank, which has recently become bankrupt. As a result of the incident, KPMG in South Africa was forced to dismiss two key partners of the firm and agree to review the results of the audit. According to the press service of the firm, KPMG went to restore the confidence of the business community to its work.
It was undercalculated deposits amounting to 900 million South African rands (about 53 million of British pounds sterling) during the audit of the mentioned above VBS Mutual Bank. In this connection KPMG is accused of violating the policies and procedures adopted to disclose important financial information.
The process of reviewing the audit results of VBS Mutual Bank in South Africa will be directly coordinated by KPMG International.
According to Nhlamulo Dlomu, KPMG South Africa executive director, this episode is very annoying for the company, however, they will not tolerate any manifestations in the work that could damage the reputation of the firm. He also added that KPMG was confidently going to address that situation and would cope with it very quickly.