Australia’s Biggest Companies Face KPMG Audit Credibility Crisis
Synopsis
KPMG’s audit scandal is intensifying scrutiny of Australia’s Big Four, raising concerns over auditor independence, corporate governance and investor trust.
KPMG audit scandal investigation has expanded following further evidence in a parliamentary inquiry about the misuse of confidential information from clients and handling of complaints from whistleblowers.
The inquiry has investigated claims relating to information about Lendlease and Optus. ASIC said that it did have formal investigations underway regarding the conduct of individual KPMG registered company auditors for the two matters.
There are also changes at the top of the company due to the KPMG audit scandal. On July 21, 2026, John Sams was appointed the CEO of KPMG Australia and earlier in July, Michael Ebeid was named the firm's first independent chairman.
In June, KPMG made the announcement of an action plan in areas of governance, culture and ethics and internal controls. The company also revealed plans to have more independent representatives on its Australian board.
KPMG Financials Show A$2.315 billion Revenue
KPMG's audit debacle coincides with the fact that the firm has a big business in Australia. The 2025 Transparency Report showed that A$2.315 billion was its total revenue for FY2025, an increase from A$2.386 billion in FY2024.
The revenue from Audit and Assurance has grown 7% to A$365 million, but the revenue from consulting has decreased 18% to A$749 million. The report also indicated that statutory audit generated 21% of KPMG's revenues, while 73% came from non-audit clients.
Big Four Dominance Adds Sector Context
The KPMG audit scandal is playing out in a market where Australia's biggest listed companies are heavily dependent on Big Four companies.
In 2022, 99.2% of the audit fees on the top 200 ASX-listed companies by assets were paid to Deloitte, EY, KPMG and PwC, as they audited 96.5% of these entities. The audit share of these companies was 37.9% for all companies listed on the ASX.
The government has subsequently issued an options paper calling for greater accountability of large accounting firms, auditing firms and consulting firms, including measures on conflicts of interest and audit oversight and partnership governance. The consultation was open until August 12th, 2026.
The issue also offers a comparison of regulatory frameworks for US businesses in Australia. The US Public Company Accounting Oversight Board conducts separate inspections of large audit firms, but states that the results of these inspections are not a judgment on their overall performance but rather cover selected audits.
Source: Smart Company
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.
