HONG KONG Nov 25 KPMG'S
chairman on Friday outlined ten steps needed to improve the
auditing industry, calling for a global set of standards and
saying the Olympus Corp scandal reveals evidence of
"significant fraud" although it is too soon to cite governance
"We need a global set of accounting standards," said Michael
Andrew at the Foreign Correspondents Club here, in a speech
entitled "Fraud, Financial Crises and the Future of the Big
He also called for more regulatory oversight as auditing
firms have found themselves caught between regulators wanting
different rules and standards. Andrew cited this year's
accounting scandals involving Chinese companies listed in the
United States as an example.
He also spoke of the difficulties in Europe, where
accounting for Greek debt was not being factored under one
standard by the parties impacted.
Andrew said he was constrained in what he could say about
the Olympus scandal, although he did address the issue, saying
that KPMG had done the right thing in the actions it took
pertaining to the Japanese company.
"What is pretty evident to me is that it is a very, very
significant fraud," he said, adding: "We should wait for the
Japanese authorities to disclose that."
"I think it is very hard to jump to the conclusion that it's
a corporate governance failure," he said.
KPMG AZSA LLC audited Olympus for several years until 2009,
when it was replaced by Ernst & Young ShinNihon LLC. An internal
document obtained by Reuters showed that the maker of cameras
and medical equipment replaced KPMG after a dispute over how to
account for some acquisitions.