THE KPMG AUDIT

A company audit is simply “a formal or official examination of company records and accounts to verify sound business practice”.


As soon as Leaderguard Spot Forex became a company (January 2003), they were required to appoint an auditor. They chose KPMG.

KPMG was asked to audit the financial statements of Leaderguard for the year starting January 28 2003 and ending February 2004.

After a year’s investigations, interviews with Directors and accounts staff, an examination of all accounts and doubtlessly discussions with Leaderguard bankers – an annual report was submitted by KPMG.

Their findings were:-

“We KPMG have obtained all the information and explanations that we have required”

“In our opinion,
· Proper accounting records have been kept by the company as far as it appears from an examination of those records.
· The financial statements give a true and fair view of the financial position of the company as at 29th February 2004 and of the results of its operations and cash flows for the period ended, and comply with the companies Act 2001 and international finance reporting standards”.

Wonderful: A clean bill of health for Leaderguard Spot Forex!

But how does KPMG explain what happened a year later when the Directors of Leaderguard were brought to court and pleaded guilty to over 20 counts of fraud?

What is more serious, many of dishonest dealings took place in the year of KPMG’s audit! Right under the noses of the auditors!

keep reading this blog and learn more about the directors and their deceitful behaviour.