Chartered Accountants [CA ANZ] to probe big four over data leaks
Jun 11, 2026
Chartered Accountants ANZ has launched an investigation into how big audit firms handle confidential information, widening the potential fallout from a mishandled whistleblower complaint at KPMG Australia.
The “quality practice review”, ordered by the industry body’s chief executive Ainslie van Onselen, will also examine ethical practices at KPMG, Deloitte, EY, PwC and four other large firms.
Chartered Accountants Australia and New Zealand chief executive Ainslie van Onselen ordered the new investigation. Alex Ellinghausen
The accounting body is already investigating three KPMG partners over one of the whistleblower’s allegations of client data misuse and is examining a registered company auditor from the firm who used artificial intelligence to cheat on internal AI training.
“CA ANZ conducts quality practice reviews of major firms on a regular three-year cycle, the most recent of which was completed in FY26,” said a spokeswoman for the accounting body.
“The CEO-directed reviews announced today are separate to and over and above that regular cycle, directed at specific ethical standards.
“These targeted reviews have been issued to the eight largest Australian accounting firms.”
The body has more than 140,000 members, who are bound by ethical and professional obligations, including the need to keep client data confidential.
Individuals can be stripped of their ability to practise by the body’s disciplinary arm, while firms face fines of $250,000 for breaching professional rules. Big four professionals represent about 10 per cent of the body’s membership.
The complaint that triggered the new investigation relates to allegations that partners misused client data to win work.
The whistleblower – a former KPMG audit director – alleged that partners misused confidential Lendlease board papers to pitch for audit contracts with Westpac and Dexus.
Inside information was also allegedly used to secure work from Macquarie Group and Westpac.
KPMG Australia and KPMG International refused to grant the whistleblower legal protection and failed to properly investigate the matter for two years.
The claims became public in March when Labor senator Deborah O’Neill raised them in the Senate.
The following day O’Neill said the joint committee she chaired would hold a hearing on June 19 into the allegations. Representatives of CA ANZ, including van Onselen, have been called to testify.
Former execs set to testify
KPMG has since conceded there were three incidents of client data being misused.
In May 2026, former chief executive Andrew Yates and former head of audit, Julian McPherson resigned amid the fallout from the scandal, as internal pressure mounted for the early exits of local chairman Martin Sheppard and former chief operating officer Eileen Hoggett. All have been called to testify at the hearing.
The firm also apologised to the whistleblower and admitted its three earlier investigations had been inadequate, before announcing a fourth inquiry by Allens, the law firm that previously dismissed most of the allegations.
Federal Assistant Treasurer Daniel Mulino has launched an inquiry into whistleblower laws and said the government would reopen an examination of how large partnerships were governed.
The Australian Securities and Investments Commission and the Tax Practitioners Board are also investigating aspects of the allegations.
While governments are reviewing KPMG contracts. Lendlease will also replace KPMG as its auditor next year, after almost seven decades.
CA ANZ has repeatedly called for partnerships to be captured by whistleblower laws to close a gap in existing legislation.
[Australian Financial Review]
