ASIC probes ‘Big Four’ audit companies amid misconduct claims

The Australian Securities and Investments Commission (ASIC) has launched a reappraisal into however the 'Big Four' audit companies grip complaints astir audit conduct, intensifying regulatory scrutiny of the sector.

The determination follows allegations that KPMG unit misused confidential accusation to unafraid contracts and comes arsenic the national authorities weighs tougher controls connected ample accounting, audit and consulting partnerships.

The ASIC's reappraisal volition absorption connected interior and whistleblower complaints related to audit practices including the handling, usage and sharing of confidential information.

This enactment volition proceed alongside a separate, ongoing probe into circumstantial allegations involving KPMG.

ASIC seat Sarah Court said: "The allegations concerning KPMG are serious.

"ASIC volition usage the existing suite of constricted powers disposable to us, portion continuing to prosecute constructively with the government's betterment process."

The reappraisal is being launched arsenic Australia's Treasury consults connected reforms that could fortify oversight of large nonrecreational services companies and perchance widen ASIC's role.

The authorities has besides indicated it is considering structural options, including "breaking up the Big Four", pursuing a bid of high-profile controversies.

KPMG Australia has been accused by a whistleblower of utilizing confidential lawsuit accusation to triumph lucrative work.

PwC Australia was progressive successful a ungraded astir 3 years agone involving the sharing of confidential authorities taxation information with prospective clients.

The ASIC said it would proceed its "significant probe into circumstantial allegations of misuse of lawsuit confidential accusation astatine KPMG".

The regulator besides highlighted constraints successful its existent ineligible powers implicit partnership-structured audit practices, noting that these disagree from its wider authorization implicit corporations, including listed entities.

"ASIC probes 'Big Four' audit companies amid misconduct claims" was primitively created and published by The Accountant, a GlobalData owned brand.