IRREGULAR EXPENDITURE
Airline flies to KPMG after qualified audit opinion
South African Express has asked KPMG to help with its books
The auditor-general has again raised concern about the going-concern status of South African Express (SAX) and has taken the airline to task for losing millions as a result of its high levels of irregular expenditure. SAX has asked KPMG to help with its books as it disagrees with auditor-general Kimi Makwetu, who has given the airline a qualified audit opinion. Makwetu has criticised SAX’s lack of adequate governance controls, its leadership, its weak financials and its performance management. "The entity did not have an adequate system for identifying and recognising all irregular expenditure and there were no satisfactory alternative procedures that I could perform to obtain reasonable assurance that all irregular expenditure had been properly recorded in … the financial statements," Makwetu wrote. The auditor-general said the carrier failed to take effective steps to prevent fruitless and wasteful expenditure of R30m and that significant internal control deficiencies resulted in ...
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