In the latest issue of IRBA News, Issue 65, seven finalised disciplinary matters and 16 finalised investigation matters were reported.
In four disciplinary matters, appropriate levels of professional scepticism weren’t applied, with respect to client continuance decisions, indicating failures relating to the firm’s risk management and quality procedures. Two matters related to sufficient appropriate audit evidence not having been obtained for material balances and related disclosures. One matter related to non-disclosure of a loan with VBS, which was not on ordinary lending terms and conditions, thereby compromising KPMG’s independence and bringing the profession into disrepute.
In several investigation matters, sufficient appropriate audit evidence was not obtained for material balances, and material misstatements were not identified. In other matters, sufficient appropriate audit evidence was not obtained regarding compliance with laws and regulations. Some matters related to non-compliance with group audit requirements and a lack of professional scepticism applied, and others to independence threats not identified, evaluated and responded to appropriately.
Issue 65 of IRBA News may be accessed on the following link: