ASIC launches surveillance into ‘Big 4’ audit firms
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The news: The Australian Securities & Investments Commission (ASIC) has launched a surveillance review of the ‘Big 4’ audit firms KPMG, Deloitte, EY and PwC following internal complains and allegations relating to auditor conduct at KPMG.
The context: The regulator said the surveillance will examine internal complaints, including whistleblower reports, received by the firms in relation to the external audit services they provide.
The review will assess whether the firms have received complaints alleging auditor misconduct, including the misuse or inappropriate sharing of confidential information.
ASIC said it is using its compulsory information-gathering powers to obtain relevant information. The surveillance forms part of the regulator’s expanded focus on audit misconduct, with ASIC adding that it will continue its investigation into allegations involving the misuse of confidential client information at KPMG.
What they said: “The allegations concerning KPMG are serious. ASIC will use the existing suite of limited powers available to us, while continuing to engage constructively with the Government’s reform process,” ASIC chair Sarah Court said.
“Whistleblower protections should be extended to people seeking to make disclosures about partnerships such as KPMG. Strong protections are essential if misconduct is to be identified, escalated and addressed,” she added.
The source: ASIC media statement
