Doubt cast over KPMG's 'integrity' in wake of audit leaks scandal

Concerns over KPMG's integrity have surfaced during a parliamentary inquiry into a major audit leaks scandal, with several prominent companies questioning the firm's trustworthiness. Executives from Macquarie Group, Westpac, Optus, and Dexus appeared before a parliamentary committee examining allegations that KPMG audit partners misused confidential client data and mishandled a whistleblower's complaint.

In March, Senator Deborah O'Neil revealed whistleblower allegations suggesting that confidential board papers from Lendlease were used to support KPMG's bids for audit tenders from Westpac and Dexus. On Friday, the Parliamentary Joint Committee on Corporations and Financial Services, chaired by Senator O'Neill, questioned corporate leaders about their multi-million-dollar contracts with KPMG.

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That is why we have felt moved to write to them [KPMG] and ask for work to be done. In a nutshell … we need clarity on was there any misuse, not only of our information but anybody else's.

Macquarie chairman Glenn Stevens stated that the company is reviewing its $75 million-plus annual audit contract with KPMG. He acknowledged that while Macquarie had "no reservations" when initially appointing KPMG, the recent revelations are "concerning." Macquarie is seeking clarity from KPMG regarding any potential misuse of information. The company is relying on a law firm's review to assess KPMG's trustworthiness, although the whistleblower was not directly interviewed during that review.

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It seems to me that you're putting to us the view that you are willing to spend $75 million on auditing capacity for KPMG, but you don't trust them with regard to scoping.