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FinanceKPMG Australia admits improperly sharing confidential Optus data for Telstra audit pitch
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KPMG Australia has admitted that its staff improperly shared confidential Optus information with an internal team pitching for rival Telstra's audit work, breaching ethical standards. The disclosure was made by chairman Martin Sheppard at a parliamentary hearing, confirming earlier whistleblower allegations. The case adds to separate allegations that KPMG used confidential Lendlease board papers in bids for audit mandates with Westpac and Dexus. Former CEO Andrew Yates resigned after law firm Allens uncovered evidence regarding Optus. Lendlease, which was not informed until May 2025, ended its nearly 70-year audit relationship with KPMG, with its chairman calling the conduct a 'fundamental breach of trust.' Lawmakers at the hearing suggested tougher regulation of Big Four accounting firms may be required. The scandal has increased pressure on KPMG, which also recently deleted a global AI report after false case studies were exposed.
Source report
KPMG Australia has admitted that its staff improperly shared confidential Optus information with an internal team that was pitching for audit work with rival Telstra, according to Reuters. The company acknowledged that the action breached its ethical standards.
The disclosure was made by KPMG Australia chairman Martin Sheppard at a parliamentary hearing. It confirms earlier whistleblower allegations that the company had previously said were not supported by internal and external reviews.
Sheppard told lawmakers: "The Optus, Telstra matter emerged very recently."
Broader Context and Allegations
The Optus case is part of a wider scandal involving KPMG's use of confidential documents. Separate allegations have emerged that KPMG used confidential Lendlease board papers in bids for major audit mandates with:
- Westpac
- Dexus (property group)
These Lendlease-related claims have dominated the scandal to date and have increased pressure on the company.
Key Testimony and Developments
- Former KPMG Australia CEO Andrew Yates told the hearing that evidence concerning Optus—uncovered by law firm Allens—triggered his resignation last month.
- Lendlease was not informed until May 2025, roughly one year after the whistleblower first raised concerns internally.
- Lendlease chairman John Gillam described KPMG's conduct as a "fundamental breach of trust."
- Lendlease has since decided to end its nearly 70-year audit relationship with KPMG.
- Yates said he had not informed Optus of the complaint and could not recall when Westpac and Dexus were notified.
Regulatory Implications
Lawmakers at the hearing indicated that tougher regulation of the Big Four accounting companies may be required.
Additional Recent Incident
Earlier this month, KPMG deleted a global report on AI after multiple case studies were found to be inaccurate and appeared to have been generated from AI hallucinations.
This report was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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