AN AUDIT by KPMG of Portugese financial giant Espirito Santo International (ESI) has found it is in a “serious financial condition”.
In a US regulatory filing by its affiliate Banco Espirito Santo, details are revealed about the parlous financial condition of its parent. A review of ESI’s financial statements for 30 September 2013 and 31 December 2013 by KPMG found irregularities in its accounts.
The audit committee of Espirito Santo Financial Group (which owns a share of Banco Espirito and is itself part-owned by ESI) also identified irregularities in ESI’s accounts.
While Banco Espirito stated that it was not responsible for ESI’s problems, it accepted that it might face reputational damage as a result.
Debt from ESI had previously been sold to ESFG and subsequently onto Banco Espirito clients, a move that, while not illegal, had prompted the audit.
Banco Espirito CEO Ricardo Salgado had sat on ESI’s board until March.
Steve Butler of Punter Southall Aspire highlights the importance of pension governance meetings to protect against mistakes and safeguard company reputation
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland