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Posts Tagged ‘KPMG’

KPMG (Hyflux’s and Temasek’s auditor) latest US problem

In Accounting, Corporate governance on 18/06/2019 at 6:58 am

KPMG has agreed to pay U$50m to settle claims by the Securities and Exchange Commission that it went back to alter audits it had already completed, after using stolen data from the Public Company Accounting Oversight Board, an accouting watchdog that revealed they were about to be inspected.

The SEC also found that numerous KPMG audit professionals had cheated on internal training exams by sharing answers and manipulating test results.

Related post: Hyflux: “going concern” BS/ KPMG again and again

 

 

 

Hyflux auditor in s*** house yet again

In Accounting, Corporate governance on 12/06/2019 at 11:18 am

Must be KPMG again

India is pushing for a five-year ban on Deloitte and KPMG over allegations the firms helped conceal bad loans at Infrastructure Leasing & Financial Services, a major infrastructure and finance group whose default last year triggered a credit crisis.

FT

Related posts:

Time investors to put pressure on Hyflux’s auditor?

Hyflux: “going concern” BS/ KPMG again and again

Hyflux on investor losses: “Not our fault, banksters at work”

Time investors to put pressure on Hyflux’s auditor?

In Accounting, Corporate governance on 22/05/2019 at 7:03 am

Lim Tean has said he’s been talking to a group of Hyflux investors who lost money. Well they should and other Hyflux investors should take note that KPMG (their watchdog)

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KPMG’s role in Hyflux

“When KPMG issued an unqualified opinion on the full year results for the Hyflux Group in March 2018, there were no events or conditions that individually or collectively, cast significant doubt on the going concern assumption as at the balance sheet date of 31 December 2017, or at the audit report date of 22 March 2018.”

Then according to Hyflux, everything went wrong when in May, there was a run on Hyflux by its banksters. Because of its bad (and unexpected?) Q12018 results announced on 9 May: “certain financiers expressed concerns over their ability to continue with existing credit exposures to the group.”* They tot halal Hyflux had transmuted into haram Hyflux.

Hyflux on investor losses: “Not our fault, banksters at work”

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is in more trouble in the UK. British regulators have called for KPMG to be fined at least a record £12.5m for misconduct in its work for Bank of New York Mellon.

(It’s other UK troubles: Hyflux: “going concern” BS/ KPMG again and again)

Time to shakedown KPMG for $.

 

Hyflux: “going concern” BS/ KPMG again and again

In Accounting, Corporate governance, Financial competency on 08/04/2019 at 10:46 am

The constructive, nation-building media report that the Accounting and Corporate Regulatory Authority (Acra) is watching the Hyflux fiasco closely. And this is newsworthy? It’s ACRA job to investigate, not watch, cock-ups like these.

But then being a regulatory bureaucrat is one good way of getting a very expensive free lunch. The other is being a minister.

ACRA is watching because Hyflux investors (who never bothered to read the issue documents or Hyflux’s financials) are asking why Hyflux’s auditor KPMG failed to flag the risks of Hyflux earlier. Like real given they didn’t bother to read: Hyflux: Don’t cry for the investors. So even if accounts were qualified, what could the investors? Only KPKB earlier because the shares etc would have been suspended on a haram certification.

Seriously, this “news” reminded me that UK’s accounting watchdog Financial Reporting Council (FRC) made public, several weeks ago, plans to make auditors apply more robust checks when reviewing whether a company was likely to continue operating in response to several high-profile corporate failures that have undermined confidence in business.

Two recent UK corporate failures were similar in nature to what happened at Hyflux.

To recap: KPMG on 22 Match 2018, said the 2017 accounts were halal, but on 22 May 2018, the company sought court protection from its creditors: Did Hyflux’s auditors mislead? and Hyflux directors, mgt & auditors kooning from 2016 onwards?.

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Hyflux’s BS explanation:

“When KPMG issued an unqualified opinion on the full year results for the Hyflux Group in March 2018, there were no events or conditions that individually or collectively, cast significant doubt on the going concern assumption as at the balance sheet date of 31 December 2017, or at the audit report date of 22 March 2018.”

Then according to Hyflux, everything went wrong when in May, there was a run on Hyflux by its banksters. Because of its bad (and unexpected?) Q12018 results announced on 9 May: “certain financiers expressed concerns over their ability to continue with existing credit exposures to the group.”* They tot halal Hyflux had transmuted into haram Hyflux.

Hyflux on investor losses: “Not our fault, banksters at work”

Hyflux should have remembered

A Banker Lends You His Umbrella When It’s Sunny and Wants It Back When It Rains

(Often attributed to Mark Twain)

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Coming back to the FRC: it wants auditors to do more when reviewing whether a company was a “going concern” and likely to remain in business for another year, highlighting the collapses of construction group Carillion (auditor KPMG) and retailer BHS as key factors behind the decision.

It said auditors should challenge corporate management teams “more robustly” and “thoroughly test” the adequacy of the evidence put forward by company directors. It also wants auditors to say whether they believed management assessments with respect to going concern judgments were appropriate, and to explain how they came to that conclusion.

It said the collapse of BHS, Carillion, and failed UK bank HBOS during the financial crisis, had “brought into question why such companies had clean auditor’s opinions, which included no warnings that the companies were at risk of collapse”. Sounds like Hyflux?

Mike Suffield, the FRC’s acting executive director of audit regulation

Recent corporate failures and the FRC’s own enforcement work has shown the existing [going concern requirements] needs to be strengthened.

Our proposals will significantly expand the work required of auditors — however, we believe this to be an important investment in the quality of the work that underpins what is a cornerstone of audit.”

Karthik Ramanna, professor of business and public policy at the University of Oxford’s Blavatnik School of Government

The implication of these proposals is that auditors missed key red flags due to weak auditing standards. The real issue isn’t that the auditors need more technical guidance but rather that they are conflicted in their dual roles as watchdog and consultant.

(Emphasis mine)

Hyflux shareholders should be angry to learn that KPMG (their auditor which audited Carillion and HBOS), said it had (in the UK) already increased how much information it provided in audit reports this year by highlighting the key risks the firm considered when “carrying out work on the going concern basis of accounting”.

KPMG added: “It is vital that as a profession, we examine all possible avenues to improve public trust both in audit, and the wider corporate landscape. We welcome the FRC’s consultation into the standards governing our work around going concern, and how we report on that work to shareholders.”

Will KPMG also provide this info for us natives for SGX listcos?

Btw, KPMG is the forensic auditor whose report the Aljunied Town Council is relying on in take the Wankers Three to the cleaners: “Peanuts”: WP MPs’ liability. KPMG is also Temasek’s auditor: TOC misrepresents facts yet again.

“Peanuts”: WP MPs’ liability

In Accounting, Corporate governance, Financial competency, Public Administration on 19/02/2019 at 1:31 pm

All this talk about Hyflux’s accounts and KPMG reminded me of another set of accounts that involved KPMG.

Aljunied-Hougang Town Council (AHTC)

is seeking to claim S$33.7 million of “improper” payments made to AHTC’s former managing agent FM Solutions and Services (FMSS) and contractor FM Solutions and Integrated Services (FMSI).

A retired WP cadre (no friend of Auntie, Low or Bayee) told that this amount is excessive. It’s all the gross payments made by WP run Aljunied town council to FMSS and FMSI without deduction for services provided. No-one, not even PAPpy running dogs (apologies to the real dogs), denies that services were provided: What the US army and WP have in common. The issue is accounting for those payments: Wankers’ Party still blur on audits and accounting and .

The lawyer for the Wankers Three said

The sum of money that AHTC seeks to claim is unreasonable, as it amounted to all payments made to FMSS and FMSI. This contradicts the previous assessment made by accounting firm KPMG, which stated that there was an alleged improper payment of slightly over S$1.5 million, with only about S$624,000 to be recovered.

The retired cadre who has read all the various audit reports (AGO/ PwC and KPMG) says that while KPMG has lots of issues about the payments made to FMSS and FMSI , it has only flagged as an improper payment an amount around $1.5m. The other payments are open to question, some more questionable than others, only considering as haram an amount around $1.5m  : What the US army and WP have in common

Whatever, funny that the defence lawyer slammed KPMG while relying on its view of liability of the amount in question:

Defence lawyers in AHTC trial slam the way KPMG compared managing agent costs

Read more at https://www.channelnewsasia.com/news/singapore/defence-lawyers-ahtc-trial-day-4-slam-kpmg-managing-agent-costs-10812630

Low can easily pay off $1.5m: juz sell one of his condos.

 

 

 

 

Where were FIFA’s auditors?

In Accounting, Corporate governance, Footie on 12/06/2015 at 2:32 pm

As FIFA Scandal Grows, Focus Turns to Its Auditors. Despite longstanding suspicion of corruption, FIFA has received a clean bill of financial health for 16 consecutive years from KPMG, one of the world’s top auditing, accounting and consulting firms.

“It’s legitimate to raise questions about the effectiveness of the audits, given that the risks were already widely rumored.”
Barry Jay Epstein, a financial-reporting expert, on KPMG giving FIFA a spotless record of financial health.

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