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KPMG report signals firm’s renewal

KPMG report signals firm’s renewal

KPMG South Africa yesterday released its first Integrated Report which provides a transparent account of progress made to fundamentally change the firm over the past 18 months.

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KPMG South Africa yesterday released its first Integrated Report which provides a transparent account of progress made to fundamentally change the firm over the past 18 months.

The report covers what has been a difficult period for the firm, and provides a frank analysis of what the firm has learned and how it plans to regain the trust of the South African public. The report forms an important part of the firm’s ongoing commitment to transparency and accountability and provides stakeholders with the opportunity to assess its progress.

KPMG has implemented far-reaching changes over the last 18 months to enhance the quality of work and to address the challenges of the past.

The firm launched the report at an event to recognise the renewed focus for the firm. Senior leaders from KPMG took part in a panel discussion hosted by media veteran, Tim Modise, to provide detail on specific areas the business has changed that have contributed to the stabilisation of the firm and have improved sentiment from clients and industry.

KPMG has started to see recognition of the remedial efforts outlined in the report, with its re-admittance to Business Leadership South Africa, re-appointment by many existing clients and securing new clients.

Chairman Professor Wiseman Nkuhlu said: “KPMG is today a profoundly different firm. Far-reaching changes have been introduced to governance, to leadership, to risk management, client engagement and client continuance as well as audit quality controls. Our ongoing task is to rebuild trust in KPMG both internally and externally.

“Quality and ethics underpin our efforts to rebuild that trust. These are not mere words. They are wired into our operating practices and supported by the changes we have made to our governance framework.”

Prof Nkuhlu said KPMG is well-positioned and stands ready to again play a significant and constructive role in South Africa by serving both business and society. He believes the company has a key role to play in creating a positive future for the profession.

“I am excited about the prospect for further, accelerated renewal under our new CEO Ignatius Sehoole’s leadership when he joins the firm in May. As we look forward with a sense of excitement, we do so also with a sense of humility. The past is still close at hand and we will never forget the lessons we have learnt. We believe that the changes we have made have earned us a second chance and an opportunity to rebuild the firm.”

A snapshot of 18 months of reform:

• Reforms to our governance and leadership, including the introduction of independent non-executive members to the Board and enhanced Board oversight of the key areas of Quality and Risk. Additionally, in May we will welcome our newly-appointed CEO, Ignatius Sehoole, who will bring a wealth of industry experience and an outsider perspective.

• Changes to who we work with, re-evaluating our client portfolio and exiting relationships which do not align with our risk assessment criteria or business model going forward, and more rigorous procedures for new client acceptance.

• Establishing a Public Interest, Social and Ethics Committee in early 2018 to ensure that ethics and the public interest remain at the top of our agenda. In addition, we decided that the Committee should be chaired by an independent party and we are delighted to confirm that Ansie Ramalho accepted and is fulfilling this role.

• We are in the process of donating R47.8-million in fees from work on Gupta-related entities to Education and Anti-corruption initiatives and organisations, and are also focusing our long-term corporate citizenship strategy on SMME Development, Pro Bono Services and Employee Volunteerism.

• Audit quality is the single most important priority for the firm. We are implementing our Audit Quality Plan which will bring about significant improvements in audit quality.

The full report is available to download here: https://bit.ly/2VFeMh2

For more information, contact:
Nqubeko Sibiya
+27 (0) 76 991 5823

© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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