ASIC launches a review into audit practices at KPMG, PwC, and other major firms amid confidentiality breaches and government reform talks.
The Australian Securities and Investments Commission (ASIC) has initiated a review of the Big Four audit firms, focusing on how they handle complaints about audit conduct. The probe follows allegations that KPMG staff misused confidential client information to secure contracts, raising concerns over ethical practices in the sector.
The review coincides with broader government consultations on strengthening oversight of large accounting and consulting firms. ASIC’s investigation will run alongside a separate probe into specific KPMG allegations, while Treasury considers reforms that could expand ASIC’s authority or even break up the Big Four. PwC previously faced scrutiny over similar confidentiality breaches involving government tax data.
ASIC Chair Sarah Court described the KPMG allegations as serious, noting the regulator will use its current powers while engaging with ongoing reform efforts. The outcome could reshape regulatory frameworks for Australia’s audit and consulting industries.