Why new management appointed KPMG to audit Arik Air

Arik Air

Arik Air

KPMG has been appointed to undertake forensic and diagnostic audit of the finances of the troubled Arik Air, Nigeria’s biggest airline.

The Nigerian government had last week taken over the management of the airline because of its huge debt profile which had left to distruption in its operations.

A statement by the new management of the Airline on Tuesday,said KPMG will undertake auditing of assets and liabilities and their utilisation; recording and utilisation of loans; and propriety of third party transactions.

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It will also cover fraud controls over procurement, agents and business partners and financial reporting, and Arik Air’s financial position as of January 31, 2017.

The audit report is to be submitted in 12 weeks.
“We have hired KPMG to look into the financials of Arik with a tooth comb and advise us with verifiable facts on what went wrong with the airline.

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“We need to do that because the outcome will help us plug the loopholes and stabilise the airline. The whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations,” the new management said.

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