KPMG’s Audit Scandal Takes Another Turn as ASIC Steps In
Synopsis
ASIC is investigating KPMG Australia’s disclosures about whistleblower complaints while separately examining alleged misuse of confidential client information. KPMG reported A$2.257 billion revenue in FY26, down 1%.
ASIC investigation on KPMG deepens as corporate regulator probes company's Transparency Report 2025 for false or misleading statements relating to whistleblower complaints.
The investigation follows a new development in the probe into KPMG, which had been hit with regulatory pressure over alleged improper access or use of confidential data from clients in relation to audit work done by the partners.
ASIC Examines KPMG’s Transparency Report
Partially, the ASIC investigation is focused on the fact that KPMG told ASIC that it had not received any complaints from whistleblowers on audit quality during the financial year that ended on June 30, 2025.
There were no internal complaints about audit quality during FY25 or FY24 for company’s audit operations in Australia, as reported in its 2025 Transparency Report. The reports are to be filed with ASIC before publication by qualifying audit firms.
The corporate watchdog’s investigation follows allegations of confidential client data breaches made in May 2024 in relation to the handling of information by a whistleblower. KPMG then admitted it had been deficient in its handling of the complaint and ordered an external examination.
ASIC is also formally investigating three KPMG Australia partners for alleged misuse of confidential information. It is also covering the case of Lendlease and Optus, along with possible breaches of whistleblower protections, in its investigation.
KPMG Revenue Slips as Scrutiny Begins
The investigation follows KPMG Australia's weaker revenue overall in its latest financial year, as shown in a update.
In FY26, KPMG generated A$2.257 billion in revenue, a fall of 1% compared to FY25. Consulting revenue fell by 16.9%, Audit & Assurance revenue grew by 11% and Tax & Legal revenue grew by 10.9%.
KPMG has also announced its intention to reduce its workforce in Australia by approximately 5% (around 27 partners and 360 staff), mainly in consulting and business services.
The ASIC investigation follows concerns about big accounting firms in Australia. In the latest published market data, ASIC revealed that the Big Four audited around 95% of all ASX listed companies by market capitalization, illustrating their share of the country's listed-company audit market.
KPMG Australia's report does not include transparency reporting by KPMG member firms in other countries. The firm has a global network, and each member firm is regulated according to the laws and regulations of the jurisdiction in which it is located.
The investigation is ongoing, and Parliament is also launching an inquiry into ASIC's actions in relation to its whistleblower problem.
Source: The Sydney Morning Herald
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.
