Australia’s Federal Government has outlined plans to tighten supervision of the ‘Big Four’ accounting companies following a series of governance controversies across the sector.
The move follows allegations that KPMG staff improperly used confidential information in an effort to secure contracts.
According to a Reuters report, the government has directed the Australian Securities and Investments Commission (ASIC) to bolster its regulatory approach to accounting and audit practices.
The step is aimed at improving the accountability, transparency and oversight of the audit sector.
However, the government did not reveal the measures that it will employ.
Earlier in the month, the government floated proposals to place the major companies more directly under ASIC’s authority, as well as to expand the regulator’s powers and increase penalties for breaches.
ASIC separately announced this month that it will review whistleblower reports related to audit practices across the industry, while continuing an existing probe into particular claims involving KPMG.
The government has also indicated that forcing a structural split of the Big Four companies remains among the options it is weighing.
Each of the Big Four operators has faced reputational setbacks in Australia in recent years.
In the KPMG case, the company has come under scrutiny over the alleged misuse of sensitive data. At EY, two employees were dismissed in June after allegedly obtaining the prime minister’s personal banking details, according to a news agency report.
Deloitte issued an apology last year after researchers found that a report it produced for a government department included AI-generated material that was fabricated. PwC was severely impacted in 2023 by disclosures that it leaked confidential tax policies to secure client contracts.
