Originally posted by OzJ
Incidentally, I'm actually more heartened by SAS signing up KPMG as auditor than I am by Malone. Unless they think they are getting an early jump on the administrator business, then they expect a bit of revenue from SAS. They don't get involved with small fry like this because companies like SAS cannot normally afford big four rates. (and with the amount of cash SAS has in the bank, neither can they)
So either KPMG are utterly desperate or they had a talk and thought these guys would be worth the punt at the crap rates they'll have to charge for a while. They see a lot of small companies come and go and if KPMG is willing to take a punt then that's an encouraging data point.
Hmmm, I don't think so. Of course, there are basic safeguards put by the auditing firms including KPMG in terms with being associated with potentially dubious clients but any of the big four will sign any client, even not-for-profit or SME much more for ASX listed clients. Worse comes to worst and the company becomes insolvent, KMPG will suffer little to none reputation damage, for as long as they did follow the auditing standards. I guess what I am trying to say is KMPG signing any client is not putting any punt on the success of their client. They will get paid regardless of the results of the client.