KPMG launches internal probe into audits of FIFA

29 September 2015 Consultancy.uk

KPMG International has launched an internal probe into its Swiss arm’s audits of FIFA. Since the FIFA corruption investigations by both Swiss and US prosecutors, firms involved with FIFA are seeking to make sure that they do not inadvertently get pulled into the controversy, and if they do, to do so in a self-controlled manner.

The possible FIFA corruption scandal continues to grow in scope. The Swiss prosecutor recently opened a criminal probe into the not-for-profit’s President, Sepp Blatter. Staff from the Swiss Attorney General’s Office (OAG) recently turned up at Blatter’s office for an official search, while the79 year old President himself underwent questioning. According to the Attorney General’s office, “suspicion of criminal mismanagement and suspicion of misappropriation” are being investigated.

While Blatter is embroiled in suspicion, concerns have also been raised about the role of the not-for-profit’s auditors, KPMG Switzerland, in the debacle. Football Association chairman Greg Dyke recently questioning KPMG’s possible role in the "cloud of corruption" being investigated by both Swiss OAG and US Department of Justice (DoJ). Of particular interest to enforcement agencies is the sum of $10 million (£7 million) paid to former FIFA-executive Jack Warner. A wise move, says Football Association boss Greg Dyke. “Someone should go to the auditors (KPMG) and say, ‘Hang on, where actually did that come from and go to? Where is it in accounts? Did you know about this?' Respectable auditors will not like being involved in this sort of stuff,” he remarks.

FIFA - Blatter

Internal probe
According to KPMG international, the possibility of an improper role of KPMG Switzerland in the FIFA accounts is being assessed through an internal probe of the Swiss arm of the firm. KPMG International spokesman, Andreas Hammer, says that KPMG Switzerland’s audit of FIFA would be examined "in consultation" with its international experts.

The Swiss arm of KPMG has been FIFA’s financial auditor since 1999, and must by law report on any irregularities discovered in its reporting. Earlier this year Swiss KPMG’s contract as auditors for FIFA was continued by the audit and compliance committee for the period 2015/2018.

External probes of FIFA
FIFA itself recently launched an internal probe into its operations, currently being conducted by Quinn Emanuel Urquhart & Sullivan, an independent and external law firm.