After signing off on the falsified accounts of the Chinese operations of water treatment company Phoslock Technologies, it seems auditor KPMG Australia saw no conflict in accepting more fees to investigate its own work.
Generally, when evidence of serious accounting fraud is found within a business, it is regarded as best practice to appoint an investigation team independent of your own auditor to investigate the issues.
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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com
