Deloitte South Africa is set to be probed for its role as Steinhoff International\u2019s auditor, City Press reported.<\/p>\n
It comes after rival firm and fellow Big Four auditing unit, KPMG, came under scrutiny for its role in state capture. KPMG was accused of aiding state capture by facilitating or \u2018turning a blind eye\u2019 to alleged money laundering by Gupta-linked companies.<\/p>\n
Auditing regulator, the Independent Regulatory Board of Auditors (Irba), said it would investigate the auditing work that Deloitte did on Steinhoff\u2019s 2014, 2015 and 2016 financial statements, City Press said.<\/p>\n
Steinhoff International said last week that it will restate its 2016 financial results after a probe uncovered fresh concerns.<\/p>\n
The company, which owns the Mattress Firm chain in the US, discovered the problems with its previous year\u2019s balance-sheet accounting while reviewing statements from 2017, according to a filing on Wednesday.<\/p>\n
\u201cThe 2016 consolidated financial statements will need to be restated and can no longer be relied upon,\u201d the company said.<\/p>\n
The announcement follows a deepening scandal over the company\u2019s finances. Markus Jooste resigned as chief executive officer earlier this month, and the bedding giant appointed auditor PwC to probe accounting irregularities.<\/p>\n
Moody\u2019s Investors Service cut Steinhoff\u2019s rating to junk last week in the wake of the announcement.<\/p>\n
Deloitte said it received an Irba letter requesting a written response to allegations of improper conduct in relation to Steinhoff.<\/p>\n