Redefine Properties has announced its decision to place KPMG on notice, with the board agreeing to terminate its association with the auditing firm.
At Redefine’s Annual General Meeting in February this year, it was proposed that KPMG be re-appointed as its independent external auditors for the 2018 financial year on condition that “the Audit and Risk Committee actively monitor the outcomes of the investigations underway and take appropriate action as and when further information becomes available”.
Subsequent to this decision, the board thoroughly assessed the continuing developments that were communicated by the auditing firm and the local media. The concern over good governance and ethics compliance aided the decision.
KPMG’s appointment as external auditors will terminate on conclusion of the audit relating to the 2018 financial year which is expected conclude around November later this year.
“Redefine’s reputation is everything and our decision was made for this reason. We will have a new auditor on board for the 2019 financial year” commented Redefine CEO, Andrew Konig.
“Audit quality, consistency and continuity are of paramount importance to Redefine and we are mindful of the time and effort it takes to onboard new external auditors. Given the current circumstances and in the best interest of all our stakeholders, we felt it appropriate to commence with this change as soon as possible” commented CFO Leon Kok who said that the decision was not taken lightly.
The Board remains satisfied with the real estate experience and technical expertise of KPMG and the designated audit partner will accordingly support its continuance as auditors during the transition period to assist in a smooth and efficient handover to the new auditors.