Australia's corporate regulator has initiated a formal investigation into three partners at KPMG Australia, according to a Reuters report dated June 5. The probe follows whistleblower allegations that the accounting firm misused confidential client data to secure lucrative audit contracts.
The Australian Securities and Investments Commission (ASIC) disclosed that it had started a preliminary inquiry into KPMG in April. The regulator escalated the matter to a formal investigation after the resignation of the firm's CEO and audit chief last week.
ASIC Chair Sarah Court informed a Senate committee on Friday that the formal investigation had commenced earlier that week. She noted that multiple compulsory notices had been issued to KPMG during that period. Court stated that three registered company auditors were currently within the scope of the investigation, but she described the situation as an ever-moving feast as more information emerges, suggesting the scope may expand.
KPMG did not immediately respond to a request for comment.
In March, Senator Deborah O'Neill, from Australia's ruling Labor party, presented to parliament a whistleblower's allegations of misconduct at KPMG. The allegations included that confidential board papers from real estate company Lendlease were used to support bids for major audit tenders for Westpac, a large bank, and Dexus, a property firm.
KPMG had conducted an internal investigation into the claims but found no evidence to substantiate any...
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