Overview
- KPMG announced on Wednesday that chief operating officer Eileen Hoggett has relinquished executive duties but will remain an audit partner while investigations continue.
- The decision follows the recent resignations of KPMG Australia's CEO and head of audit over the firm's handling of an earlier internal review of the whistleblower's complaints.
- KPMG says its initial internal probe did not substantiate the whistleblower's claims that confidential Lendlease board papers were used to support audit bids for Westpac and Dexus.
- The Australian Securities and Investments Commission has opened a preliminary investigation into the conduct of three KPMG registered company auditors and a parliamentary hearing on the allegations is scheduled for June 19.
- The case revives scrutiny of Australia's professional services sector after the 2023 PwC leaks and could lead to tougher oversight, client losses for KPMG, and wider industry reform if misconduct is found.