Two Thumbs Up for KPMG
Two different industry magazines annually ranking firms across various fields have separately awarded the global accountancy firm KPMG as the “best auditor in 2010” for its services in auditing, risk management and compliance.
Despite the controversies that have challenged KPMG in the past, particularly the House of Lords Economic Affairs Committee inquiry into the role of auditors in the 2008 financial crisis and many others, KPMG has received praises from the International Fund Investment (IFI) and Operational Risk & Regulation Magazine.
In Australia, KPMG had faced charges of audit failure from Westpoint which went bust in 2006. The Australian Securities & Investments Commission (ASIC) claimed that KPMG failed to identify the issues in the lead-up to Westpoint’s failure, while investors were in the receiving end of the impact of insolvency.
ASIC also claimed KPMG failed to ring the alarm over Corporations Law breach committed by Westpoint.
In December 2008, John Larson, a former senior tax manager, and Robert Pfaff, a former KPMG tax partner were found guilty of tax evasion.
But the charges were believed to be tip of the iceberg. US prosecutors said KPMG had allegedly helped wealthy investors to set up doubtful tax shelters to avoid taxes amounting to billions of dollars.
Nonetheless, IFI, an asset management magazine focusing on jurisdictions overseas, named KPMG as the Best Auditor in 2010 during its annual Fund Domicile Service Provider Awards that recognizes the contribution of service providers across industries.
The votes were cast by voters from the different sectors, feedback from clients, and independent groups that evaluated the performance of the nominees.
Meanwhile, the first place in the recent Enterprise-wide Compliance & Risk Management Strategy, Regulation Strategy and Anti-Money Laundering services for 2010 was given to KPMG by the Operational Risk & Regulation Magazine, a monthly publication.
David McGarry, managing partner of KPMG Isle of Man, said the award has been a tribute to the firm’s “international strength” in providing risk and compliance services to its clients.
He added that IFI’s recognition for KPMG has been remarkable since it reflects the views of different clients.