Case Analysis Of KPMG
A central theme common in all the regulations across different jurisdictions is the recognition of the need to embrace a value system with potential for a holistic achievement of societal goals. Myriad laws and regulations may never suffice without a corresponding willingness to act ethically. Ethics go beyond compliance with laws and regulations, it encompasses a tendency to just ‘act right’. Several concepts apply to sound corporate governance, but best practice can be achieved where there are: right and equitable treatment of shareholders, interest in other stakeholders, role and responsibilities of the board, integrity and ethical behavior, disclosure and transparency. For the long term success of any company, there must be efficient and
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KPMG is a professional service company and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY), and Pricewaterhousecoopers (PwC). Having made its name and mark in the world of accounting, KPMG is one of the best accounting firms in the world with trademarks of integrity and transparency. This has not been the case however in recent times. In 2017, KPMG was embroiled in related scandals involving the Gupta family. KPMG, whose history in South Africa dated back to 1895, and which had been part of the international organization since its founding in 1979, faced calls for closure, and an uncertain future, as a consequence of the damage done to the South African economy as a result of its activities. The actions of KPMG South Africa is nothing less than an insult and a hot slap on the face of the principles of corporate governance and accounting standards and ethics. But for the leaked Gupta emails, the partners of KPMG would have felt no guilt as they, like fat men at a smorgasbord, feasted on their annual partnership profits significantly increased by fees of dubious reports and questionable audits. Their executives' actions point to a failing in their fiduciary duties. What we see is a complete lapse of judgment, which compromised their fiduciary responsibilities. The disgrace of KPMG in South Africa should be a warning siren for the other audit firms to reassess their internal processes and their corporate governance mechanisms. This is vital for socio-economic development because in modern societies, underpinned by complex financial and economic structures, the audit firms play a unique and pivotal role in assuring that resources are used with probity and
KPMG is a professional service company and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY), and Pricewaterhousecoopers (PwC). Having made its name and mark in the world of accounting, KPMG is one of the best accounting firms in the world with trademarks of integrity and transparency. This has not been the case however in recent times. In 2017, KPMG was embroiled in related scandals involving the Gupta family. KPMG, whose history in South Africa dated back to 1895, and which had been part of the international organization since its founding in 1979, faced calls for closure, and an uncertain future, as a consequence of the damage done to the South African economy as a result of its activities. The actions of KPMG South Africa is nothing less than an insult and a hot slap on the face of the principles of corporate governance and accounting standards and ethics. But for the leaked Gupta emails, the partners of KPMG would have felt no guilt as they, like fat men at a smorgasbord, feasted on their annual partnership profits significantly increased by fees of dubious reports and questionable audits. Their executives' actions point to a failing in their fiduciary duties. What we see is a complete lapse of judgment, which compromised their fiduciary responsibilities. The disgrace of KPMG in South Africa should be a warning siren for the other audit firms to reassess their internal processes and their corporate governance mechanisms. This is vital for socio-economic development because in modern societies, underpinned by complex financial and economic structures, the audit firms play a unique and pivotal role in assuring that resources are used with probity and