Ashurst denies involvement in KPMG Australia scandal

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City-headquartered law firm Ashurst has denied any involvement in investigating allegations at KPMG Australia, as the fallout from the Big Four firm's scandal continues to intensify.

Investigation Claims Disputed

Ashurst reportedly conducted an investigation from June to August 2025 into allegations made by a whistleblower against an unnamed former executive. This followed KPMG's own internal inquiry and an additional investigation by external law firm Allens.

According to The Australian Financial Review, KPMG claimed that Ashurst was brought in to investigate the allegations — first formally made in May 2024 — and found "no wrongdoing."

However, Ashurst partner Jane Harvey rejected this account, telling a parliamentary inquiry in Australia on Friday that the firm was never instructed to investigate the whistleblower's claims.

"We were not engaged to undertake an investigation and we did not conduct one," Harvey said.

Ashurst's global chief executive officer, Paul Jenkins, added that the firm had been engaged to investigate an employment claim related to the allegations, but not the allegations themselves.

Parliamentary Inquiry Developments

Australian Senator Deborah O’Neill, who chairs the inquiry, accused KPMG on Friday of throwing both Ashurst and Allens "under the bus."

The developments follow the Australian government and several clients severing ties with the Big Four firm for audit work until September this year, amid allegations that KPMG mishandled client information.

As a result of the scandal, KPMG is set to be banned from bidding on Australian government contracts until September 2026, while the country's Department of Finance investigates the firm's governance and ethical standards.

The controversy also led to the immediate resignations of KPMG Australia's chief executive, Andrew Yates, and the national managing partner of audit and assurance, Julian McPherson, at the end of May.

Lendlease Condemns KPMG's Conduct

KPMG Australia has lost one of its largest clients, Australian property developer Lendlease. On 15 June, Lendlease announced plans to drop KPMG as its auditor, ending a 68-year relationship that reportedly generated approximately AUD $10 million (£5.2 million) in fees for the firm.

According to the whistleblower allegations, Lendlease's confidential board papers were used without permission to help KPMG secure audit work from Westpac and the property company Dexus.

During the parliamentary inquiry, Lendlease chair John Gillam condemned the Big Four firm's behaviour, describing the sharing of confidential documents as a "fundamental breach of trust."

Ashurst's Transatlantic Merger

In December last year, the UK-based law firm agreed to merge with US law firm Perkins Coie — the latest in a series of transatlantic merger moves in the legal sector. The deal is expected to complete on 1 July 2026.

The agreement with Seattle-based Perkins Coie will create a $2.7 billion law firm, to be known as Ashurst Perkins Coie, following a week of merger speculation.

Ashurst was contacted for comment.