Global audit major KPMG will face questions from the Serious Frauds Investigation Office (SFIO) in connection with the Rs 870-crore alleged fraud at Reebok India, corporate affairs secretary Naved Masood said on Monday. While Delhi-based N Narasimhan & Co was the statutory auditor of Reebok India, a forensics team from KPMG had also been tasked in 2010 by the German company to probe any instance of financial irregularities in its Indian subsidiary by its senior executives. KPMG is also global auditor of Adidas. It is believed that KPMG forensics report had given a clean chit in its findings.
SFIO inquiry will look into the overall alleged fraud in the company and the role of KPMG will also be covered as part of this.
The SFIO is expected to look into the entire issue. With regards to KPMG, they will broadly look into three issues.
- Whether it is a fact that KPMG had given a clean chit in its forensic report; if so,
- Whether this should have been given; and lastly, if wrongly given,
- Whether anything happened that led to this
The economic offences wing (EOW) of the Gurgaon police department is also understood to have questioned officials of KPMG India over the matter.
Source: Times of India