Former KPMG Executives Questioned About Firm's Actions
A former KPMG chief was at a hearing.
In short:
A parliamentary inquiry is looking at KPMG's actions.
Key quote:
'You've let them assess themselves.' - Labor Senator Deborah O'Neill
A parliamentary inquiry into KPMG has heard from major companies.
Corporate leaders appeared before a committee.
In March, a senator shared a whistleblower's allegations.
Senators are critical of KPMG's internal investigations.
A committee quizzed executives from companies that work with KPMG.
Macquarie is reviewing its contract with KPMG.
Macquarie's chairman says the bank is reviewing its contract.
Macquarie faced pressure after a former KPMG partner attended meetings.
The firm shortlisted PwC and KPMG for the audit role.
Many more whistleblowers are talking to the inquiry.
A senator said there are many more whistleblowers.
The new KPMG chair spoke with the initial whistleblower.
He defended his appointment as the new chair.
KPMG executives gave evidence at the hearing.
Some executives resigned, while one was sacked.
Former KPMG partners appeared at the hearing.
A senator asked for a list of agreements with former staff.
The senator asked about payments to former staff.
A case may be used to teach legal students.
Legal reports were released under parliamentary privilege.
A committee realized the seriousness of publishing the documents.
A senator appeared at the KPMG hearing.
A former KPMG auditor stored Lendlease documents.
The auditor faced questions about storing confidential documents.
She said she did not recall sharing the documents.
A senator asked why she did not admit it earlier.
The auditor responded that she was not dishonest.
She said she did not recall printing the documents.
An email showed that Lendlease documents were stored.
The auditor worked in an open-plan environment.
Documents are printed and stored in lockers.
The auditor said she was not aware of the documents being shared.
A senator asked about the auditor's locker access.
The auditor said only she and her PA had access.
A senator asked who else was responsible.
The auditor took full accountability.
She printed documents for her client work.
A senator asked if she felt like the 'fall guy'.
The auditor responded that it was not fair to speculate.
A former partner said she did not know a screenshot was confidential.
She said she did not recall being aware of the confidentiality.
The screenshot was not used in the Westpac audit tender.
A senator said she committed a breach of professional standards.
The partner responded that she did not.
A senator asked how she characterized the situation.
The partner said she was not aware of the confidentiality.
A senator compared the situation to a burglary.
KPMG paid for lawyers and PR advice for former partners.
The new KPMG chair spoke with the initial whistleblower.
A former executive said she was sacked by the current CEO.
She received legal assistance from a law firm.
The law firm was paid for by KPMG.
KPMG partners faced higher sanctions in another case.
A former audit boss received advice from a communications firm.
He lost his bonus due to sanctions.
Fines were imposed on partners and staff.
The fines were higher in another case.
Information was withheld from a law firm.
A law firm dismissed the whistleblower's right to protection.
The law firm said its role was to provide employment-related advice.
KPMG provided incomplete information to the law firm.
Another law firm was brought in to conduct a fresh investigation.
The investigation concluded that the allegations were unsubstantiated.
Both law firms were questioned at the inquiry.
A former CEO shifted blame to a board subcommittee.
A senator asked why critical information was withheld.
The CEO said the investigation was done under the subcommittee.
A former chairman and CEO appeared at the hearing.
Macquarie shortlisted KPMG despite concerns.
The decision to shortlist KPMG is being reviewed.
The company had no reservations about KPMG initially.
The latest revelations are concerning.
Macquarie needs clarity on whether there was any misuse of information.
The company is relying on a law firm to decide if KPMG is trustworthy.
The law firm did not directly interview the whistleblower.
A senator said Macquarie does not trust KPMG.
The company is spending $75 million on auditing capacity.
A senator said the law firm's review was not sufficient.
The company needs to decide if KPMG is trustworthy.
There may need to be structural change in the audit sector.
One option is to split the audit and accounting functions.
The company needs higher integrity behavior.
A former chairman defended a director's conduct.
Westpac calls on KPMG to address the issues.
A former Lendlease chairman said KPMG should get on top of the issues.
The only warning of the allegations was made to a director.
The director did not tell the rest of the board.
The director resigned due to perceived conflicts.
KPMG told the director there was no issue to be concerned about.
The board did not hear of the allegations until they were read out in parliament.
There was escalating concern at Westpac.
The director resigned because of social contacts during the tender process.
The company got a comprehensive explanation of the allegations in May.
KPMG is in the second year of its audit with Westpac.
There were 200 KPMG professionals and 18 partners who worked on the Westpac audit.
The company is frustrated with the 'drip feed of information' from KPMG.
The company needs KPMG to get on top of the issues.
There are only four major firms that can audit complex organizations like Westpac.
A round of golf was played during the tender process.
Dexus's chairman said the company's former CEO played golf with KPMG's CEO.
The former CEO had announced his resignation and was largely absent from the process.
The chairman said the former CEO probably said the price should be lower.
It was a natural reaction for the former CEO.
The chairman said KPMG should have engaged a different law firm.
The company should use a separate firm to review the situation.
Optus is watching KPMG 'like a hawk'.
Optus's chairman says the company has to adopt a more rigorous control environment.
The chairman said there was an egregious breach of professional responsibilities.
KPMG needs to work to rebuild trust.
The chairman said once he understood that Optus's confidential information was shared, he knew what he needed to know.
The committee hearing continues.
See more ABC coverage.
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