2 more senior executives depart KPMG

As reported in The Australian Financial Review, KPMG general counsel Louise Capon and head of HR, Dorothy Hisgrove, have stepped down from their respective roles as the enquiry into misconduct continues.

While Capon will step down from her role immediately after more than ten years with KPMG, she will remain for a short transition period, and Hisgrove will end her five years as the firm’s National Managing Partner of People and Inclusion once a replacement is made.

Capon and Hisgrove are both scheduled to appear at the parliamentary joint committee hearing on Friday into the audit misconduct allegations.

The Parliamentary Joint Committee on Corporations and Financial Services has been examining allegations raised by a whistleblower and former KPMG executive since March, when senator Deborah O'Neill first aired the allegations in parliament.

As reported by Accounting Times, the committee has examined allegations that KPMG misused confidential audit information and the treatment of the whistleblower after they raised concerns.

A recent investigation conducted by Allens confirmed one of the whistleblower's allegations: that client information was inappropriately retained in a locker by former chief operating officer Eileen Hoggett. This was previously denied by KPMG.

The firm has seen a number of departures from its senior leadership team since the scandal unfolded, including former chief executive Andrew Yates, former chairman Martin Sheppard, and former national managing partner of audit and assurance, Julian McPherson, and audit partners Kim Lawry and Paul Rogers. Former chief operating officer Eileen Hoggett was also expelled from the partnership last month after new evidence was uncovered by Allens.

KPMG declined to comment at the time of publication.