Story perspectives

ASIC probes KPMG partners; CEO resigns, contracts at risk.

6/5/2026

Summary

ASIC Probes KPMG

ASIC opened a probe into KPMG partners Paul Rogers and Eileen Hoggett for misusing data to win audits, after the resignation of KPMG’s CEO and audit chief, said ASIC Chair Sarah Court.
The Department of Finance may suspend KPMG from advisory contracts.
The Reserve Bank of Australia will not renew KPMG’s $10,000-a-year whistleblower service.
Dexus will not have Hoggett sign its 2026 accounts while REST seeks more information from KPMG.

Summary

Mulino caps partners

Treasurer Daniel Mulino announced a 400-partner cap and Australian Securities and Investments Commission (ASIC) firm-wide enforcement under a Corporations Act.
Department called the scandal “significant”, placed $270 million in KPMG contracts and warned extensions may be blocked.
A whistleblower says partners used Lendlease board papers to win audits for Westpac, Dexus and Macquarie.
KPMG’s Canberra office faces a $330 million cliff as contracts end 30 June, fears partners may quit before 19 June inquiry.

Summary

ASIC Escalates KPMG

ASIC upgraded its preliminary probe of KPMG Australia into a full-scale formal investigation of the firm and three auditors.
ASIC is testing how its regulatory hooks apply to KPMG’s partnership structure, affecting enforcement reach.
Eight active ASIC-KPMG contracts worth $3 million stay under review as the probe continues.
Deputy Chair Sarah Court warned the audit-scrutiny could broaden if new evidence implicates more auditors.

Summary

Pocock questions ASIC

Senator Barbara Pocock questioned the Australian Securities and Investments Commission (ASIC) about its eight KPMG contracts totaling $3 million, excluding audits and requiring KPMG to assure no staff work on them, during Senate estimates.
Reserve Bank of Australia Governor Michele Bullock announced the KPMG-run whistleblower hotline will be re-tendered.
Assistant Treasurer Daniel Mulino released a whistleblower paper end-July before June 19 inquiry as New South Wales and Victoria review KPMG contracts.

History

Historical Context

After the Enron scandal, Congress passed the Sarbanes-Oxley Act in 2002—named for Senator Paul Sarbanes and Rep. Michael Oxley and comprising eleven titles that tightened auditor independence and required CEO/CFO certification. Praised by Alan Greenspan in 2005, the law inspired similar reforms in Australia in 2004, prompting ASIC’s current probe of KPMG and related regulatory actions.

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ASIC Probes KPMG

ASIC opened a probe into KPMG partners Paul Rogers and Eileen Hoggett for misusing data to win audits, after the resignation of KPMG’s CEO and audit chief, said ASIC Chair Sarah Court.
The Department of Finance may suspend KPMG from advisory contracts.
The Reserve Bank of Australia will not renew KPMG’s $10,000-a-year whistleblower service.
Dexus will not have Hoggett sign its 2026 accounts while REST seeks more information from KPMG.

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