The corporate watchdog has launched a formal investigation into a top-tier consultancy firm following allegations it misused confidential information.
The Australian Securities and Investments Commission told a budget estimates inquiry it had begun the investigation into KPMG, one of the Big Four accounting firms, expanding a preliminary probe.
The firm’s Australian head Andrew Yates resigned in May following the treatment of and the mishandling of allegations by a whistleblower, after an internal investigation into the claims of misconduct was found to have fallen short of the firm’s expectations.
ASIC’s chair Sarah Court said the larger investigation began earlier in June.
“We have deep concerns about what has been revealed in the press, and we are trying to get to the bottom of the evidence as to those various incidents,” she told the inquiry on Friday.
“This is an ever-moving feast at the moment as more information comes our way, so I don’t know that that will be the end of it.”
Ms Court said ASIC had provided KPMG with multiple notices about the formal investigation.
“ASIC has been engaging proactively with KPMG and that level of engagement has intensified,” she said.
Three of KPMG’s four registered company auditors are within the scope of the probe, Ms Court said.
Assistant Treasurer Daniel Mulino said the federal government was reviewing the contracts it had with the consultancy firm.
“There’s also a briefing coming up from the department, from Treasury to me, in relation to whistleblower activity in light of this,” he told ABC Radio.
“One of the issues that we’re going to need to examine is the extent to which whistleblower protections in relation to corporations apply to partnerships.
“It’s not a straightforward area, and that’s one of the issues that we’ll look at as part of the whistleblower inquiry.”
Mr Mulino said the powers of ASIC under corporations laws and how they interacted with partnerships also needed to be examined.
“There was already a process underway, but the allegations against KPMG have just heightened the urgency of this,” he said.
Ms Court said ASIC did not have the information to hand about why Mr Yates resigned as Australian chief executive.
Audit head Julian McPherson also resigned from KPMG following the allegations.
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