Macquarie, Westpac executives to testify in KPMG Australia audit probe

Executives from Macquarie Group and Westpac are scheduled to testify before an Australian parliamentary inquiry probing KPMG's involvement in a long-running audit scandal.

The inquiry, launched by the Australian Senate Economics References Committee, is examining KPMG Australia's conduct in auditing financial statements of several major corporations, including entities linked to Westpac and Macquarie. The scandal centers on allegations of conflicts of interest, inadequate auditing standards, and potential breaches of professional conduct by KPMG partners.

Macquarie Group, one of Australia's largest investment banks, and Westpac, one of the country's 'big four' lenders, have both confirmed their executives will participate in the hearings. The inquiry follows earlier revelations that KPMG Australia had improperly shared confidential client information with other KPMG global offices, raising concerns about auditor independence and ethical standards.

The scandal has drawn scrutiny from regulators, including the Australian Securities and Investments Commission (ASIC), which has previously imposed fines on KPMG for lapses in audit quality. The parliamentary committee is expected to assess whether regulatory oversight of auditors needs to be strengthened, particularly in light of recurring issues within the sector.

KPMG Australia has issued statements acknowledging past failings and pledging to cooperate fully with the inquiry. The firm has also implemented internal reforms aimed at improving audit quality and restoring confidence in its operations.

The hearings are part of a broader review of corporate governance and audit integrity in Australia, with lawmakers seeking to address systemic weaknesses exposed by high-profile financial scandals. The outcome of the inquiry could lead to legislative changes or stricter enforcement of existing regulations.