The issue centres on KPMG’s pitch for Westpac’s lucrative external audit, during which partners viewed internal Lendlease documents that were not meant to be used. One audit partner accessed and displayed two Lendlease files at an October 10 2023 meeting attended by the two senior partners and other staff working on the Westpac proposal.
KPMG responded by issuing formal warnings and financial penalties to all three. The Westpac audit generates about $32 million in annual fees and highlights the commercial stakes attached to the pitch.
Disciplinary action has now extended beyond the one audit partner previously linked to the incident, with the identities of the additional two senior partners only now emerging. One of those partners also sits on KPMG’s board, raising governance concerns.
The other recently stepped down from a key leadership position at the start of June. The sanctions arrive as that transition plays out.
Attention now turns to whether the sanctioned leaders remain in their current roles and what this means for KPMG’s relationship with Westpac. Market watchers are particularly focused on whether the board member can continue to oversee the bank’s audit engagement.
There is also uncertainty over whether the former chief operating officer stays at the firm at all, adding another layer of tension inside the partnership.
