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FinanceKPMG Australia admits improper sharing of confidential Optus information
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KPMG Australia has admitted that staff improperly shared confidential Optus information with an internal team pitching for rival Telstra's audit work, breaching ethical standards. The disclosure by chairman Martin Sheppard at a parliamentary hearing confirms earlier whistleblower allegations that were previously dismissed. The Optus case adds to separate allegations that KPMG used confidential Lendlease board papers in bids for major audit mandates with Westpac and property group Dexus. Former CEO Andrew Yates resigned after law firm Allens uncovered evidence related to Optus. Lendlease, which was only notified in May 2025 a year after the whistleblower first raised concerns, called the conduct a fundamental breach of trust and ended its nearly 70-year audit relationship with KPMG. Lawmakers indicated tougher regulation of Big Four accounting firms may be needed. KPMG also recently deleted a global AI report after false case studies emerged.
Source report
Source: International Accounting Bulletin Author: Ellichipuram Umesh
KPMG Australia has admitted that its staff improperly shared confidential Optus information with an internal team pitching for rival Telstra's audit work, breaching the company's ethical standards, Reuters reported.
The disclosure, made by KPMG Australia chairman Martin Sheppard at a parliamentary hearing, confirms earlier whistleblower allegations that the company had previously said were not supported by internal and external reviews.
According to the news agency, Sheppard told lawmakers that "The Optus, Telstra matter emerged very recently."
Related Allegations
The case comes alongside separate allegations that KPMG used confidential Lendlease board papers in bids for major audit mandates with Westpac and property group Dexus. These Lendlease-related claims have dominated the scandal to date and increased pressure on the company.
Executive Resignation
Former KPMG Australia CEO Andrew Yates told the hearing that evidence concerning Optus, uncovered by law firm Allens, triggered his resignation last month.
Lendlease Fallout
- Lendlease was not informed until May 2025, around a year after the whistleblower first raised concerns internally.
- Lendlease chairman John Gillam called KPMG's conduct a "fundamental breach of trust."
- Lendlease has since decided to end its nearly 70-year audit relationship with KPMG.
Regulatory Concerns
Yates said he had not informed Optus of the complaint and could not recall when Westpac and Dexus were notified. Lawmakers at the hearing indicated that tougher regulation of the Big Four accounting companies may be required.
Previous Incident
Earlier this month, KPMG deleted a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations.
This article was originally created and published by International Accounting Bulletin, a GlobalData owned publication.
Source
Yahoo FinanceWestern
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