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CAPE TOWN, Sept. 22 (Xinhua) -- South African Finance Minister Malusi Gigaba on Friday expressed deep concern over unethical practices currently surrounding KPMP and urged government departments to review relations with the international auditing firm.
All government departments and their entities must consider reviewing their work programs with KPMG to ensure that their audit processes have not been compromised in any way, and to take appropriate steps if it has been compromised Jae Crowder Cavaliers Jersey , Gigaba said.
In this regard, the government should explore possible regulations for both the public and private sector in an effort to ensure and preserve the integrity and good governance in the audit fraternity, the minister said.
This move will not only ensure that companies diversify their audit options but also build in a peer review oversight mechanism J.R. Smith Cavaliers Jersey , said Gigaba.
"It cannot be in the interest of good governance to have one audit firm auditing a company perpetually," he added.
KPMG has been under fire for immoral and unethical auditing practices in South Africa.
Last Friday KPMG withdrew its report into the so-called "rogue unit" in the South African Revenue Services (SARS).
The report, which cost SARS 23 million rand (about 1.8 million U.S. dollars) Isaiah Thomas Cavaliers Jersey , delved into the legality of an elite crime investigative unit within SARS in 2007.
The reporot found irregularities in the establishment of the unit accused of spying on taxpapers, including VIPs, through illegal intelligence gathering.
KPMG admitted that its report on SARS lacked sufficient evidence to conclude findings of a "rogue unit" and offered to repay the 23-million-rand fee it received from SARS.
The report was partly instrumental in the downfall of former finance minister Pravin Gordhan Iman Shumpert Cavaliers Jersey , who was accused of knowing and endorsing the "rogue unit" when he was SARS Commissioner between 1999 and 2009.
Allegations around the unit's work led to Gordhan being criminally charged. However, the National Prosecuting Authority (NPA) eventually declined to prosecute Gordhan.
"The developments over the past week surrounding KPMG have reaffirmed our position that there must be mandatory rotation of audit firms," Gigaba said.
KPMG's practices have created a bad image and have undermined the reputation of good governance and audit independence in one of the key sectors and institutions in South Africa's economy Dwyane Wade Cavaliers Jersey , Gigaba said.
Recent developments further highlight the risks posed by market dominance and concentration of a few firms in key industries and offer yet another opportunity for introspections and reforms, the minister said.
He called for a concerted effort by all stakeholders to open up the sector to more players for a more de-concentrated and transformed audit sector.
"We should all join hands in rooting out bad elements that undermine the optimal functioning of our promising economy and its globally reputable instituti. Jerseys China Jerseys China Jerseys Cheap Jerseys From China Authentic MLB Jerseys Cheap Retro Soccer Jerseys Cheap Nike NFL Jerseys Wholesale Nike NBA Jerseys China Adidas NHL Jerseys From China Authentic NFL Jerseys Free Shipping