Well done Ritchie!

Why didn’t KPMG blow the whistle at FIFA?

The auditor to FIFA was at fault for not spotting corruption that didn’t go through FIFA’s accounts.

Umm, OK…?

12 thoughts on “Well done Ritchie!”

  1. By his own logic, how corrupt is the EU since those accounts haven’t been signed off in 20 years?

    How about the trustees and auditors of the JRCT that funded him, also funding ISIS via extremist groups? No comment on that Ritchie (no of course not, deleted).

  2. What should an auditor of a charitable foundation do on finding that the book for which a ‘research grant’ had been intended had not actually been written after a nbrr of years? And when that auditor then uncovers evidence of corruption , ie the recipient had in fact been using the grant as his basic income to write a blog, what should that auditor do then?

  3. I’m no auditor but I do work for a firm that does audit.
    I thought that Chapter 1, line one of the audit manual said you get bank receipts from the bank (not via the business you are auditing) and reconcile the accounts to that.

    So the payments might not have gone through the accounts, but if they went out the bank accounts then you would struggle/fail to reconcile the accounts. Red flag, no?

  4. Gary>

    The allegation isn’t that bribes were made by FIFA, or even to FIFA, but by third parties to FIFA executives. They never went anywhere near FIFA’s books or bank accounts.

  5. @ Gary
    I scrutinise the accounts of a Charity and I duly check all the bank statements and all the receipts held by the Hon Treasurer. BUT some long-serving (dating back to before he was old enough to join) and trusted activity organisers just pay into the bank monies received net of their expenses (and send the Hon Treasurer receipts for most of the latter). If they had received bribes that money would not appear in the bank statement or the accounts.
    KPMG cannot be blamed for failing to spot entries in the FIFA bank accounts for money that was paid to an official, not to FIFA, by a third partyy who wanted to influence a FIFA decision because there would be no such entries.

  6. The $10m from South Africa was paid by FIFA into CONCACAF accounts, which apparently Jack Warner could and did help himself from. There’s a paper trail for all that – see the BBC.

    So for FIFA’s auditors not to spot that, they’d have to consider looking at CONCACAF to be outside their remit.

  7. Isn’t Ritchie a CA? Shouldn’t he know at least a little something about auditing, even if only a dim memory from the days of his articles? Should the Institute be calling him in for remedial classes?

  8. You people are forgetting one thing.

    KPMG are ‘bad’. Therefore everything they do or don’t do is ‘bad’.

    Truth and justice demands this. And I can prove it.

    Because three things are clear.

    Firstly, KPMG are bad

    Secondly, I have already made my second point before, I cannot be bothered to tell what it was or where I made it, just go and read it.

    And thirdly, If I make three points, it proves my case.

    If you try to engage in neo-liberal debate on this point, I will delete you

  9. Dave, Interested: Yes, CONCACAF is an affiliate of FIFA. I don’t know how far an auditor is supposed to go, but the money, supposed to be for South Africa, was transferred in 2008 from FIFA accounts to CONCACAF accounts controlled by Jack Warner, a member of the FIFA executive committee. In 2011 Warner resigned from FIFA in the middle of an ethics investigation. Ought not the auditor show some interest?

    My point is that, contrary to the OP, at least some of the corruptly distributed money DID go through FIFA accounts.

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