Managing director of the South African Banking Association, Cas Coovaadia explains reports that it could be a bit difficult for the four SA major banks to fire KPMG as their auditors.
According to the reports, the big four banks, Standard Bank, Barclays Africa, Nedbank and FirstRand must appoint two joint auditors from the pool that comprises KPMG, Ernst & Young, Deloitte and PricewaterhouseCoopers as their auditors.
These companies are deemed to have specialist banking knowledge.
Coovadia explains the rules and why the banks could be reliant on KPMG in this instance.
The reason why banks need to have two of the auditing firms auditing them is because of the nature of the business. One of their core business is to ensure that depositors funds are protected because if the banks fails, it has significant impact on the economy.— Cas Coovaadia, Managing Director of The South African Banking Association
They need significant independent oversight other than the regulator and the regulator needs the assurance that they are doing their business in an appropriate manner.— Cas Coovaadia, Managing Director of The South African Banking Association
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This article first appeared on CapeTalk : Why SA banks can't fire KPMG