By focusing primarily on the pursuit of higher profits, many companies, including accounting firms, have unfortunately ignored their values and missions, which has often led to financial scandals.
In essence, an accounting firm is a company that helps its clients make sure their financial transactions are accurate and legal. The particularity of South Africa (SA) with the audit profession resides in the expectation that, in addition to the auditor’s duty to express an opinion on a client’s financial statements, the external auditor is also expected to highlight ‘reportable irregularities’ to the attention of an independent regulator: the Independent Regulatory Board for Auditors (IRBA) (Warren Maroun, 2012).
The adoption of the culture of wealth creation at any cost has induced these 2 accountancy firms in SA to behave like any other business in the pursuit of higher profits. Like any other corporations, KPMG and PwC had developed a recurring trend of protecting their gains at any cost, as they were willing to increase their profits through indulgence in price fixing, tax avoidance/evasion, bribery, corruption, money laundering and practices that show little regard for social norms and even laws (Prem Sikka, 2008).
Some accountancy firms seem to have little hesitation in shredding key documents to aid their clients or conceal their own role in some debacles. They are on a collision course with civil society, their involvement in bribery and corruption forces ordinary consumers to pay higher prices and degrades the quality of life for millions of people (Prem Sikka, 2008).
On numerous occasions, accounting firms have unfortunately been involved in financial scandals while auditing or advising their clients. This growing trend may be due to the fact that accounting firms have abandoned their original values and mission in favor of seeking higher profits. The involvement of KPMG and PwC in financial controversies in South Africa is just one example.
Authors: Massoda Ma-Nlep
Link: https://doi.org/10.28945/5453
Cite as:
Ma-Nlep, M. (2025). Corporate culture and its influence on accounting practices: Lessons from KPMG and PwC in South Africa. Muma Business Review 9, 19-24. https://doi.org/10.28945/5453