Key facts
- KPMG Australia imposed penalties of up to A$180,000 on seven staff members for misusing confidential client information.
- Sanctions for staff range from warnings and career restrictions to financial penalties.
- Three senior audit partners were previously fined for misusing confidential board papers from Lendlease.
- Australia's corporate regulator, ASIC, is investigating three partners involved in the scandal.
- John Sams has been appointed the new CEO of KPMG Australia, effective immediately.
KPMG Australia has imposed financial penalties of up to A$180,000 on seven staff members following an internal investigation confirming the misuse of confidential client information. The sanctions, which include warnings, career restrictions, and financial penalties, are the latest consequence of an audit leak scandal that has led to the resignations of the firm's former CEO, audit boss, and chairman.
Three senior audit partners had previously been fined for misusing confidential board papers from real estate company Lendlease. KPMG stated that internal documents were "inappropriately shared" within the firm, violating client confidentiality obligations. Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), is also investigating three partners for their involvement.
In the wake of the scandal, KPMG Australia has appointed John Sams as its new chief executive, effective immediately. Sams, previously the firm's chief financial officer and chief operating officer, has been tasked by the board with strengthening the firm's culture and restoring confidence among staff, clients, regulators, and the government.