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ASIC probes Big Four audit firms including KPMG over misconduct and whistleblower complaints, with potential tougher controls.
The Australian Securities and Investments Commission has launched a review into how the Big Four audit companies handle complaints about audit conduct. The review will focus on internal and whistleblower complaints related to audit practices including the handling, use and sharing of confidential information. This follows allegations that KPMG staff misused confidential information to secure contracts, and comes as the federal government weighs tougher controls on large accounting, audit and consulting partnerships. ASIC chair Sarah Court said the allegations concerning KPMG are serious and that the regulator will use its existing limited powers while engaging with the government’s reform process. The review proceeds alongside a separate ongoing investigation into specific allegations involving KPMG, and ASIC noted constraints in its current legal powers over partnership-structured audit practices.
ASIC probes Big Four audit firms including KPMG over misconduct and whistleblower complaints, with potential tougher controls.