ASIC Reviews Allegations of Audit Misconduct Against Big Four Accountancy Firms
The Australian Securities and Investments Commission (ASIC) is examining over 500 allegations of potential audit misconduct involving the 'Big Four' accounting firms: KPMG, PricewaterhouseCoopers (PwC), Deloitte, and EY. ASIC Chair Sarah Court stated that each case will be assessed individually before any formal investigations are launched. The review follows ongoing scrutiny of these firms for past misconduct. KPMG is under immediate pressure due to whistleblower claims alleging the firm shared confidential corporate records with potential clients during audit tenders. ASIC is investigating suspected breaches by KPMG partners, violations of whistleblower protections, and possible misleading filings. PwC also faces historical issues from a 2023 scandal involving misuse of government tax policy details. ASIC's review began in July 2023 with requests for internal documentation from the firms. The process has encountered resistance, including claims of legal privilege by KPMG.
Topics: ASIC auditing Big Four accounting firms complaints handling whistleblower claims