KPMG Australia under scrutiny after Parliament document release

KPMG Australia's handling of a whistleblower came under renewed scrutiny after documents released by an Australian parliamentary committee suggested KPMG provided a law firm with an incomplete picture of allegations raised by a whistleblower. 

The auditing firm told Ashurst that a former employee had supplied only "high level" information about alleged misconduct, according to the reports released on Monday. Based on that understanding, Ashurst concluded the individual was unlikely to qualify for legal protection available to whistleblowers.

Australia's Parliamentary Joint Committee on Corporations and Financial Services published the documents ahead of a hearing regarding KPMG Australia on Friday. The papers include the whistleblower's correspondence with different authorities and institutions, and some letters by KPMG Australia former Chairman Martin Sheppard. 

KPMG had sought confidential privilege on the documents in June, but "there is a compelling public interest case to release" them prior to the further public hearing, according to a statement from the committee. 

The saga has triggered a sweeping leadership shake-up at KPMG Australia. Sheppard and two audit partners have left the firm as part of a broader restructuring following whistleblower allegations that confidential client information was used to help secure business. KPMG appointed John Sams as chief executive officer of its Australian unit last month.