Which audit firms were considered to replace KPMG?

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Audit Firms Considered to Replace KPMG for 1MDB

1Malaysia Development Berhad (1MDB) actively sought alternative auditors in late 2013 after KPMG expressed inability to sign off on the company's financial statements for the year ending March 2013 due to insufficient information. This urgent search led to considerations of several firms, with Deloitte ultimately being the only one from the "Big Four" willing to proceed.
Deloitte Was the Sole "Big Four" Firm Willing to Audit 1MDB

Following KPMG's refusal to provide a sign-off on 1MDB's financial year ending March 2013 statements, the company, under pressure from then Prime Minister Najib Razak, initiated a search for a new auditor. Azmi Tahir, the former Chief Financial Officer of 1MDB, testified that the firm had contacted other "Big Four" audit firms but found them unwilling to take on the audit. Deloitte emerged as the only remaining major firm that indicated a willingness to consider the task, despite the significant challenges.
BDO Was Contacted as a Second-Tier Alternative

In the process of identifying potential replacement auditors, Azmi Tahir recalled reaching out to BDO, a firm considered to be in the second tier of audit firms. This outreach suggests that 1MDB was exploring options beyond the largest international accounting firms due to the difficulties in securing an auditor. However, the engagement with BDO did not appear to progress towards an appointment.
Pressure from Prime Minister Dictated the Search Timeline

The urgency to find a new auditor was significantly amplified by direct communication from then Prime Minister Najib Razak. On December 15, 2013, Najib met with KPMG and expressed his expectation for the audit to be concluded by December 31, 2013. Subsequently, then 1MDB CEO Mohd Hazem Abd Rahman informed Azmi Tahir that a new auditor needed to be found, highlighting the immense pressure due to the impending deadline and the company's high public profile.
1MDB's Auditor History Included Ernst & Young and PwC

Prior to engaging KPMG, 1MDB had initially appointed Ernst & Young as its auditor, though this firm also departed without signing off on the 2010 financial statements. Following the decision to replace KPMG, 1MDB eventually appointed Deloitte KassimChan. Later, in 2018, PricewaterhouseCoopers (PwC) was appointed as 1MDB's auditor.

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Which audit firms were considered to replace KPMG?

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