The Federal Department of Finance has announced an independent review of KPMG Australia following whistleblower allegations of inappropriate internal sharing of client documents, with the "big four" firm voluntarily agreeing not to bid for new Commonwealth work until the review concludes.
The review, expected to wrap up by the end of September, comes after a cascading scandal that has already claimed two of the firm's most senior leaders.
KPMG Australia CEO Andrew Yates and national managing partner of audit and assurance Julian McPherson both resigned on 29 May after the firm's board found its handling of the whistleblower matter and related internal investigations fell short of expected standards.
The Department of Finance issued a procurement policy note today directing Commonwealth entities to consider the review's findings when engaging KPMG for goods and services.
KPMG's voluntary moratorium on new Commonwealth bids will remain in place until the independent review is finalised.
Stan Stavros, who was appointed interim CEO following the leadership shake-up, says the firm acknowledges the seriousness of the situation.
"Individuals in our firm have made mistakes," says Stavros.
"But those failings do not reflect the overwhelming majority of our partners and people - good and talented professionals who continue to deliver high-quality work with integrity, and with a deep commitment to our values and ethics.
"We are focused on finalising a clear and robust remediation...
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