The whistleblower, a former audit director at the firm, alleges KPMG improperly accessed documents, leaned on inside information and used director relationships to secure work from Lendlease, Macquarie Group and Westpac.
These claims, which centre on compromised auditor independence in high profile tender processes, were later detailed under parliamentary privilege.
KPMG elevated its most senior named partner in the allegations to the role of chief operating officer after it had been made aware of the whistleblower’s claims.
The firm has not confirmed any individuals’ identities on the record.
According to the material aired in parliament, another audit partner is also named in connection with the alleged conduct.
The whistleblower is no longer employed by KPMG, but the claims have triggered scrutiny of how the firm conducted the contested audits and tender bids.
Professional body Chartered Accountants ANZ confirms that only three KPMG staff have self reported over the scandal so far.
They came forward only once the allegations had already been made public under privilege and the organisation has refused to identify them.
Regulatory experts say the case exposes how big audit partnerships handle internal red flags about independence and competitive intelligence during tenders.
Promotions proceeding after the firm was aware of the allegations has sharpened concerns about governance and accountability inside KPMG.
Professional bodies such as Chartered Accountants ANZ now face pressure over how they oversee and discipline members when complex conflicts arise in the audit market.
