‘Big four’ well accounted for
Why Reserve Bank keeps KPMG in the game
Reserve Bank policy only allows a ‘big four’ firm to audit banks, which may be why it hasn’t dealt more harshly with KPMG
With disgraced audit firm KPMG fast losing clients as muckrakers uncover long-buried bodies, the Reserve Bank is facing pressure over an unofficial policy that allows only the "big four" auditing firms — Deloitte, EY, KPMG and PwC — to audit local banks. Bank deputy governor Francois Groepe has called for "thoughtful leadership and restraint" in the way banks deal with the auditor, even as Standard Bank was forced to issue a statement to tell stakeholders it was doing something. Standard Bank said it had met with KPMG several times to point out that its continued association with the audit firm was harming its brand, and demand remedial action."Grant Thornton audits some of Sasfin’s nonbanking subsidiaries," says Nagar. "Grant Thornton does not audit Sasfin Bank, the banking entity." Nagar admits his firm has not tried to win audit work from the banks. It is perhaps the Bank’s "big four policy" that has stayed its hand in implementing a provision of the Banks Act that could hurt KPM...
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