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KPMG whistleblower accuses ASIC of a ‘poor attitude’ toward misconduct probes
🇦🇺 Australia /Crime & Justice

KPMG whistleblower accuses ASIC of a ‘poor attitude’ toward misconduct probes

From ABC Australia · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Under investigation
  • A KPMG whistleblower told a parliamentary inquiry that ASIC has handled alleged misconduct disclosures with an inadequate and dismissive approach.
  • The inquiry is examining claims that KPMG audit partners misused client data and mishandled a whistleblower complaint, along with concerns involving other major accounting firms.
  • ASIC said it takes whistleblower reports seriously and assesses cases in a timely and methodical manner.

A KPMG whistleblower has accused Australia’s corporate regulator of resisting action on alleged misconduct at the accounting firm. The whistleblower said the Australian Securities and Investments Commission, or ASIC, had to be “dragged kicking and screaming” to investigate disclosures.

dragged kicking and screaming

— KPMG whistleblowerThe whistleblower described ASIC’s alleged reluctance to investigate misconduct disclosures.

ASIC representatives are due to appear before a parliamentary inquiry examining the KPMG audit leaks scandal. The inquiry is investigating claims that KPMG audit partners misused client data and then mishandled a whistleblower’s complaint. It has also heard from whistleblowers at KPMG and other Big Four accounting firms.

reflects a very poor attitude to whistleblowers and whistleblowing

— KPMG whistleblowerThe phrase appeared in an email criticizing ASIC’s communication with a whistleblower.

In an email to ASIC in June, a whistleblower described an earlier attempt to disclose separate allegations that KPMG may have breached corporations law. The whistleblower said ASIC rejected that attempt and communicated in a “condescending tone,” which they said “reflects a very poor attitude to whistleblowers and whistleblowing” at the regulator.

ASIC takes all whistleblower reports and allegations of misconduct seriously.

— ASIC spokespersonASIC responded to the allegations before its appearance at the parliamentary inquiry.

The email alleged that ASIC had repeatedly known about, or possessed evidence of, possible breaches by KPMG but had “substantially done nothing bar tacitly endorse and further encourage misconduct.” The whistleblower also argued that another regulator might have to compensate for ASIC’s inaction, even though that would not be its role. ASIC said, “ASIC takes all whistleblower reports and allegations of misconduct seriously. ASIC assesses and progresses matters in a timely and methodical manner to determine the appropriate response.”

ASIC assesses and progresses matters in a timely and methodical manner to determine the appropriate response.

— ASIC spokespersonThe regulator described its process for handling whistleblower reports.
About this summary

Originally published by ABC Australia in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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