IRBA widens investigation into KPMG

File: KPMG admitted work done for Gupta-linked Company Linkway Trading and its controversial the South Africa Revenue Service rogue unit report, fell short of its professional standards. Photo: REUTERS/Siphiwe Sibeko

JOHANNESBURG – The Independent Regulatory Board for Auditors (IRBA) on Friday said it extended its probe beyond the initial investigation into KPMG’s audits of Linkway Trading and the South African Revenue Service (Sars) rogue unit report.

KPMG admitted work done for Gupta-linked Company Linkway Trading and its controversial the South Africa Revenue Service rogue unit report, fell short of its professional standards.

The audit firm is being suspected of having passed off wedding expenses as business costs.

READ: KPMG explanation of Gupta wedding audit 'unconvincing and inadequate': Corruption Watch

IRBA said one of the lines of investigation in the KMPG probe was nearing completion and would be tabled at the upcoming investigating committee.

“In the KPMG matters, the IRBA can confirm that one of the lines of investigation is nearing completion and will be tabled at the upcoming investigating committee, while others are progressing satisfactorily,” IRBA CEO Bernard Agulhas said in a statement.

“In two matters, information which was requested from KPMG remained outstanding and the IRBA continues to engage with KPMG to obtain the information necessary to complete these investigations.”

READ: EFF wants former KPMG directors struck off Chartered Accountants roll

The body says it has received most of the information requested from Sars.

"With respect to the SARS matter, the IRBA engaged with the SARS Commissioner and most of the information has been received, subsequently,” Agulhas said.

“The IRBA is confident that the additional information will be supplied in due course.

“This is consistent with the IRBA’s powers under its Act to request any information necessary to perform its investigations.”

The South African Institute of Chartered Accountants has launched a separate investigation.

The IRBA reiterated it had no involvement in that enquiry.

 

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