Troubled audit firm KPMG South Africa said on Monday that it was disappointed to lose Nedbank as its client but it understood the decision was part of the industry wide move towards mandatory audit firm rotation.
Nedbank announced on Monday it would appoint Ernst & Young as joint external auditors in May 2019 to replace KPMG
KPMG lost a number of clients and sacked its South African leadership last September after becoming entangled in a corruption scandal following revelations that the work it had done for companies owned by the wealthy Gupta family, which has ties to former president Jacob Zuma, was not up to standard.
Professor Wiseman Nkuhlu, KPMG executive chairman, said the decision by Nedbank was part of the industry wide move towards mandatory audit firm rotation, which seeks to ensure objectivity and robust auditing services are provided to all public interest entities.
Nkuhlu said this will likely involve a higher degree of change among established auditing relationships than they have been used to going forward.
African News Agency