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Australia watchdog reviews Big Four audit complaints after KPMG allegations - Finance news and analysis from Global Banking & Finance Review
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Australia watchdog reviews Big Four audit complaints after KPMG allegations

Published by Global Banking & Finance Review

Posted on July 8, 2026

1 min read

· Last updated: July 8, 2026

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Australia watchdog reviews Big Four audit complaints amid KPMG probe

ASIC Investigates Audit Conduct and Whistleblower Allegations

Overview of the Review

July 9 (Reuters) - Australia's corporate regulator said on Thursday it had begun reviewing audit conduct complaints received by the Big Four accounting firms KPMG, Deloitte, EY and PwC after recent allegations of auditor misconduct at KPMG.

Background of the KPMG Investigation

The review follows the Australian Securities and Investments Commission's (ASIC) formal investigation, launched in June, into three KPMG Australia partners over whistleblower allegations that the firm misused confidential client data to win lucrative audit contracts.

Scope of the Surveillance

Internal and Whistleblower Complaints

The surveillance will examine internal complaints, including whistleblower complaints, received by the firms in connection to the external audit services they provide, ASIC said in its statement.

Focus on Auditor Misconduct

Misuse and Sharing of Confidential Information

The review will also include whether the firms have received complaints relating to misconduct by auditors, such as the misuse or sharing of confidential information, the regulator added.

Industry Response

All four firms did not respond immediately to Reuters' requests for comment.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Tasim Zahid and Maju Samuel)

Key Takeaways

  • ASIC has expanded its review to include complaints against all Big Four firms, not just KPMG, following serious whistleblower claims about audit conduct.
  • ASIC had already opened a formal investigation in early June into three KPMG Australia partners over misuse of confidential client data to win audit mandates (econotimes.com).
  • The broader review reflects growing regulatory scrutiny of audit integrity across the sector amid declining public trust and prior scandals such as PwC’s misuse of government information (investing.com).

References

Frequently Asked Questions

Which accounting firms are involved in the audit complaints review?
The Big Four accounting firms—KPMG, Deloitte, EY, and PwC—are involved in the audit complaints review.
What triggered the review of audit complaints by Australia's regulator?
The review was triggered by recent allegations of auditor misconduct at KPMG and whistleblower claims about misuse of confidential client data.
Who is conducting the formal investigation into KPMG Australia partners?
The Australian Securities and Investments Commission (ASIC) is conducting the formal investigation.
When was the ASIC investigation into KPMG launched?
The ASIC investigation into KPMG was launched in June.

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