KPMG under scrutiny over Irish Nationwide audit
KPMG will soon publish a review of its audit of Irish Nationwide Building Society after the mutual had to be nationalised in 2010 because of multi-billion pound losses.
Although KPMG raised concerns about financial problems at Irish Nationwide in reports going back to 2000, the Big Four firm has come under pressure to reveal how much it knew about what was going on at the mutual, the Irish Times reported.
According to the paper, in 2000 KPMG said in a report sent to INBS’s board and the Central Bank that “there are no concentration limits applied to the components of the commercial (lending) portfolio in its entirety... the ongoing monitoring process of commercial loan facilities is not formalised and not documented.”
The KPMG report concluded that Irish Nationwide was operating in a manner where there was insufficient oversight of its lending and not enough focus on the risk of expanding lending by billions to developers year after year, the Irish Times reported.
KPMG Ireland’s press office did not respond to a request for comment from AccountingWEB.