‘Deeply disappointed’: CA ANZ investigates big 4 over data breaches

As reported, ASIC has launched a formal investigation into KPMG following whistleblower allegations that auditors improperly shared client documents to secure audit work.

ASIC said it has “deep concerns” and is exploring legal avenues to act against individuals involved, while the federal government is considering restricting KPMG’s access to Commonwealth contracts.

In a public statement released yesterday, CA ANZ said it is investigating the matter, which relates to possible action under the accounting body’s by-laws.

Simultaneously, CA ANZ chief executive Ainslie van Onselen has exercised powers under the regulations to direct targeted reviews of KPMG Australia and other major Australian firms, beyond the regular cycle of quality practice reviews.

These reviews will ultimately examine how confidential client information is handled and how an ethical culture is promoted.

CA ANZ reminded members of their ethical obligation to abide by the five fundamental principles outlined in the relevant Code of Ethics: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Accounting Times asked a CA ANZ spokesperson to comment, and the spokesperson reinforced the accounting body’s current position on the situation.

“CA ANZ's independent Professional Conduct Committee (PCC) is actively investigating, targeted reviews of the eight largest Australian firms are underway, and we will appear before the Parliamentary Joint Committee on 19 June, and members have been reminded of their obligations,” the spokesperson said.

Alongside the announcement of these targeted reviews, CA ANZ recognised the critical duty of whistleblowers in maintaining professional standards and accountability.

The organisation said: "Whistleblowers play a vital role in exposing misconduct and breaches of the ethical behaviour required by our members."

In June 2024, CA ANZ called for a harmonised Australian national framework and practical reforms for whistleblowers.

This included extending the provisions to partnerships and introducing targeted amendments to the Corporations Act, allowing audit team members to share protected disclosures within the audit team confidently while preserving whistleblower protections.

CA ANZ also noted its longstanding advocacy for reform in this area, citing the accounting body’s appearance before the Parliamentary Joint Committee on Corporations and Financial Services in October 2023, where chief executive Ainslie van Oneselen said the organisation had already encouraged change.

"We have recommended that enhanced whistleblower protections be introduced for the partnership model,” van Onselen told the Committee.

“There is a gap there, we believe, and we are very much proponents of that regulatory reform to enable those whistleblower protections,” she added.

Maintaining robust whistleblower protections is reinforced by the need for strong ethical oversight within the accounting profession.

Reflecting this notion, CA ANZ announced additional reviews of major accounting firms to assess compliance with specific ethical standards, in addition to its regular quality assurance processes.

"CA ANZ conducts Quality Practice Reviews of major firms on a regular three-year cycle, the most recent of which was completed in FY26,” a CA ANZ spokesperson said.

“The CEO-directed reviews announced today are separate to and over and above that regular cycle, directed at specific ethical standards”.

When asked about the potential consequences KPMG may face if the investigation breaches ANZ’s bylaws, the spokesperson did not provide any details.

“We will be providing details regarding names and firms to the Committee confidentially,” the spokesperson said.

"Our by-laws are clear that we cannot provide details publicly about current investigations, as doing so could interfere with due process and procedural fairness”.

While CA ANZ has not set a deadline for its investigation into KPMG, the broader inquiries and oversight are expected to remain ongoing well into late 2026 and beyond.