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KPMG has been banned from winning new audit contracts in Abu Dhabi after regulators removed the Big Four from the list of accountants authorized to write off companies’ financial statements.
The decision by the Abu Dhabi Accountability Authority comes weeks after another Dubai regulator fined KPMG and one of all its former partners 2 million for a failed audit of Abraaj. U.S. dollars in fines, Abraaj, an emerging-market unlisted securities firm, collapsed in 2018.
The ban will add to the challenges confronted by Emilio Pera, the veteran companion elected on Friday as the brand new chief govt of KPMG Lower Gulf after months of turbulence on the enterprise, which operates within the United Arab Emirates and Oman.
The appointment follows the resignation of chairman and chief government officer Nader Haffar last month after allegations of nepotism, cronyism and poor governance have plagued the agency since the summer. mechanism.
The turmoil, which includes calls by some partners for KPMG International to drop the Haffar and Lower Gulf boards, has raised questions about the consistency of KPMG’s global domestic firm demands and the effectiveness of the four institutions’ global bosses in policing the firms.
ADAA did not release an explanation for KPMG’s removal from its list of authorized statutory auditors, which is updated every three months, and did not immediately respond to a request for comment. ADAA screens authority entities and state-linked companies to promote transparency.
KPMG Lower Gulf said its software’s reinstatement of its license to conduct statutory audits was “returned for further information” and that the “recent change in status does not affect our current statutory audit business”.
“We are actively working with them to resolve all technical issues,” the agency said, including its “commitment to providing audit services of the highest quality.”
Pera, who will take over on January 1, was elected after a vote by fairness companions within the Lower Gulf agency. He beat out rival audit chief Osama Harmouche and consultant Wejdi Harzallah.
The election was overseen by a KPMG committee and freshfields, the legislature, after accusations that the early voting process to extend Haffar’s term until 2027 was a “sham”.
Pera may be tasked with responding to Freshfields’ governance overview recommendations and reassuring the agency’s 3,400 clients in the region, as well as ADNOC and sovereign wealth fund Mubadala Investment Company, that the company is likely to stabilize.
After riots at KPMG Lower Gulf saw several colleagues leave the agency, rivals sought to poach grieving colleagues and staff.
Pera, who had headed Gulf’s audit department after the Abraaj scandal, had yet to make an announcement at the start of the 12 months before his appointment as interim tax chief.
He said he was “deeply grateful” to Hafar and wanted to “build on what he has achieved”. “We continue to strive to be the most trusted and trusted company of choice for our customers.”
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