Ann Crotty Writer-at-large

Days after the release of the auditor-general’s damning report on South African Airways (SAA), which has grim implications for PwC, the Securities and Exchange Commission (SEC) has censured KPMG SA for "improper professional conduct" and forced the auditing firm to pay a $100,000 penalty. KPMG Zimbabwe, which was also implicated in the charge, agreed to pay an additional $141,305. The censure from the SEC, which is responsible for protecting the interest of investors in US-listed entities, relates to work done on a US-listed Canadian company operating in Zimbabwe. The SEC charged KPMG SA with relying substantially on work done by its Zimbabwean affiliate to complete their audit. Although KPMG SA is registered with the Public Company Accounting Oversight Board (PCAOB), its Zimbabwean associate is not and is therefore not allowed to participate in the audit of a US public company. The securities commission said this violated Public Company Accounting Oversight Board (PCAOB) standards ...

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