PROFESSIONAL CONDUCT
Conjuring fears of systemic risk from KPMG disgrace delays the remedy
As the crowd in the Colosseum bays for KPMG’s blood, some voices in the arena are advocating mercy by arguing that the demise of KPMG as joint auditor at four of the big five commercial banks could pose "systemic risk" to SA. Advocates favouring KPMG draw attention to the specialised nature of bank auditing; the capacity only the large audit firms seem to possess and the wellbeing of its 3,200 employees (excluding partners). KPMG SA’s new CEO, Nhlamulo Dlomu, argues that "it would not be good for the country if KPMG folded". It is as unnecessary and unproductive to twist the knife further as it is unnecessary and unproductive to support KPMG for reasons that fail to pass muster. The arguments supporting KPMG should be closely examined and measured against the firm’s performance with respect to its core values, read with the requirements of the Audit Professions Act and the Rules of Professional Conduct. Some of KPMG’s core values published on its website include "we respect the indi...
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