KPMG whistleblower criticizes ASIC’s response to reports of possible violations
A KPMG whistleblower said that the Australian Securities and Investments Commission (ASIC) has to be persuaded to investigate reports of alleged wrongdoing at the audit firm. Representatives of the regulator are due to appear at parliamentary hearings on Friday regarding the alleged misuse of client data by KPMG audit partners and the subsequent improper handling of the whistleblower’s complaint.
As ABC News Australia reports, another KPMG whistleblower approached ASIC in December 2021 with separate allegations of the company’s possible breach of corporate law. In a letter to the regulator in June, he said that ASIC had rejected his earlier attempt to report KPMG’s failure to comply with audit transparency requirements. He also complained about the lenient tone in correspondence with the regulator.
Concerns over ASIC’s work
The whistleblower claims that ASIC repeatedly had information or evidence of possible breaches of corporate law by KPMG but effectively took no meaningful action. In his view, such inaction may have tacitly approved and encouraged improper conduct.
He also alleged potentially improper relations between KPMG and ASIC and suggested that the company benefits from unjustified regulatory restraint. This is the whistleblower’s allegation, not an established fact.
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ASIC responded that it takes all whistleblower reports and allegations of possible wrongdoing seriously. The regulator said it assesses such matters in a timely and methodical manner to determine the appropriate response, and that it confidentially handles information received through whistleblower reporting channels.
Parliamentary scrutiny of KPMG
Earlier, ASIC told a parliamentary inquiry that it would examine auditors’ compliance with important systemic requirements, including the Corporations Act, ethical requirements and independence requirements. The regulator also reported a number of ongoing investigations and enforcement actions concerning auditor misconduct.
Greens Senator Barbara Pocock, who is a member of the parliamentary inquiry, called for the creation of a whistleblower protection body and for legal obligations requiring regulators to respond properly to their reports. According to her, people who report unethical conduct suffer significant personal, professional and financial losses.
KPMG said it is working to address integrity issues, strengthen accountability and restore trust. An Allens report submitted to the parliamentary inquiry stated that KPMG’s 2024 and 2025 transparency reports did not mention an active whistleblower complaint despite indisputable evidence of its existence. KPMG classified the complaint, filed in May 2024 in the audit data leak case, as an employment matter rather than an issue of audit quality and transparency.
