KPMG has been sued by its client, 2 units of Abraaj Group, for at least US$600m over claims of slipshod audit work performed, which ultimately resulted in the insolvency of the group in 2018. The audit firm is being sued for its failure to uncover irregularities over the 6 years that it audited the company.
This comes close on the heels of other auditing scandals in recent years; Ernst & Young accused of concealing fraud over its audit of NMC Health and most notably, the 1MDB saga in neighbouring Malaysia which was audited by KPMG.
This case highlights the need for professional indemnity (PI) insurance for companies and individuals that provide professional services, including but not limited to industries such as banking and finance, architecture, engineering, media services, law and healthcare. Having a PI cover will indemnify the companies and individuals in this scenario, up to the stipulated amount of coverage. Coupled with the increasing claims amount sought in lawsuits, it is imperative for companies and individuals to ensure that they are covered adequately to ensure continuity in the profession in the long run.
Contact MAKinsure to ensure that your company and professional staff are comprehensively covered TODAY.