ASIC investigating 551 whistleblower complaints against Big Four accounting firms
Quick Look
- Australia's corporate regulator ASIC is investigating 551 whistleblower complaints received by the Big Four accounting firms since July 2023, following revelations that confidential Lendlease board papers were used in audit tenders for Westpac and Dexus.
- ASIC chair Sarah Court confirmed the complaints relate to alleged misconduct by registered auditors, including misuse of confidential information, and said the regulator is reviewing each case to determine if further enforcement action is needed.
AI-generated summary
Why It Matters
The investigation follows whistleblower revelations that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus, prompting scrutiny of the Big Four accounting firms' internal whistleblower processes.
The corporate regulator has been told by the big four accounting firms – KPMG, PwC, EY and Deloitte – that there have been 551 complaints about alleged audit misconduct.
In the wake of whistleblower revelations that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus, the Australian Securities and Investments Commission (ASIC) is investigating the big four and asking them about internal whistleblower complaints.
The watchdog told a federal parliamentary hearing in Sydney today that it was looking at whistleblower complaints to the big four accounting firms dating from July 1, 2023.
ASIC's executive director of enforcement and compliance, Chris Savundra, told the hearing that, so far, 551 complaints had been made.
ASIC chair Sarah Court then clarified that "just to be clear … this includes whether the firms have received complaints relating to misconduct by registered company auditors, such as the misuse or sharing of confidential information".
"So that's what we have asked for," she said. "And then we have used our compulsory information gathering powers in relation to obtaining that material."
She said the regulator was looking at "each of these complaints and ascertaining whether there is more work for ASIC to do in relation to investigations or enforcement action or activity in relation to particular issues".
"I don't want to suggest that there's, you know, 550 serious whistleblower issues," she said.
"We don't know and there's a lot of work for us, clearly, to be looking through those complaints, getting more information as we need it."
Senator Barbara Pocock asked if that 551 figure was "spread evenly across the four firms - 125 odd or over 100 in each of the four?".
Ms Court then suggested that the hearing go off-camera so ASIC could give the committee looking into the audit leaks scandal further information.
More to come.
What to Watch
AI outlook — possibilities, not facts
ASIC will identify specific complaints requiring further investigation or enforcement action
Likely · Within months
The audit leaks scandal will lead to increased regulatory scrutiny of tender processes in the accounting industry
Likely · Within months
Open Questions
- How are the 551 complaints distributed across the four firms?
- What specific types of misconduct are alleged in the complaints?
- Will ASIC take enforcement action based on its review of the complaints?
- Are any individual auditors or partners under investigation?
