ASIC Digs Into 551 Complaints at Big Four Firms
Synopsis
ASIC is reviewing 551 complaints involving KPMG, EY, Deloitte and PwC since July 2023, while expanding audit surveillance and continuing investigations into auditor conduct and independence.
Corporate regulator ASIC is looking at allegations of non-adherence audit practices including those leveled at KPMG, EY, Deloitte and PwC, the latter of which are complaints filed under its new complaints system ASIC 551.
The complaints made against the four firms are happening from 1 July 2023, and are part of ASIC's monitoring of audit by those firms. ASIC doesn't think the 551 matters are 551 serious whistleblower cases.
ASIC chair Sarah Court said the regulator was looking at individual complaints, and if they warranted further investigation or action.
ASIC Examines KPMG’s Transparency Report
The regulator 551 complaints review comes after a wider monitoring activity by the regulator on the four firms and concerns about auditor behaviour.
ASIC has announced formal inquiries into the use of confidential information to do with Lendlease and Optus allegedly by the KPMG auditors. The investigations relate to individual, registered company auditors, and are a part of ASIC's existing jurisdiction under the Corporations Act.
During the year to June 30, 2025, the ASIC conducted reviews of 10 audit files across eight audit firms, as detailed in its report 819, ASIC's oversight of financial reporting and audit 2024–25.
Since then, ASIC has continued to have a robust surveillance program, with 25 audit-file reviews scheduled for 2026–27. Selections are on the basis of files identified as being part of a risk-based assessment, and by random selection, the regulator said.
Market concentration remains a key issue
ASIC 551 complaints review comes after the four firms' heavy application in the major listed-company audits.
Of ASX-listed companies audited in 2022, 37.9% were audited by the big four firms (Deloitte, EY, KPMG and PwC) and 83.1% of total audit fees were paid to the big four firms, or $596 million.
Of the top 200 publicly listed companies on the Australian Securities Exchange (ASX), the four companies are audited by 96.5% of them, and paid 99.2% of the audit fees in 2022. Treasury decided to focus on six audit firms that are active in the Australian market: BDO, Deloitte, EY, Grant Thornton, KPMG and PwC.
The latest supervision efforts by ASIC include auditor independence. ASIC's review in 2025 included 48 auditors and 19 audit firms, and concentrated on the risks involved with non-audit services, and long client relationships and prohibited relationships.
The regulator has stated that misconduct by auditors will continue to be its enforcement priority, and it would be able to suspend the auditor's registration or cancel their registration, issue infringement notices and pursue civil action.
Source: Capital Brief
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
