Former KPMG chief operating officer Eileen Hoggett at KPMG hearing. (ABC News: Matt Roberts)
A parliamentary inquiry is examining accounting firm KPMG on how its audit partners misused client data then mishandled a whistleblower's complaint.
"You've outsourced their assessment of themselves to themselves." — Labor Senator Deborah O'Neill
A parliamentary inquiry into the audit leaks scandal at the Big Four accounting firm KPMG has heard from several major companies that they have doubts about the firm's trustworthiness and whether it should be able to continue delivering their audits.
This morning, corporate leaders from Macquarie Group, Westpac, Optus and Dexus appeared before a parliamentary committee examining how KPMG audit partners allegedly misused client data and then mishandled a whistleblower's complaint about it.
In March, Labor senator Deborah O'Neil shared with parliament a whistleblower's allegations, which included that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus.
Senators have been critical of KPMG over concerns about inadequate internal investigations and the potential scapegoating of some partners who have been expelled while others have faced limited financial consequences.
The Parliamentary Joint Committee on Corporations and Financial Services, chaired by Senator O'Neill, quizzed executives and directors from companies that have awarded lucrative multi-million-dollar contracts to KPMG.
Macquarie chairman Glenn Stevens told the inquiry the company was reviewing whether KPMG should win the company's $75 million-plus annual audit contract.
Macquarie chairman Glenn Stevens says the bank is reviewing its contract with KPMG. (ABC News: Matt Roberts)
Macquarie has faced intense investor pressure since it was revealed that the board's audit committee chair, Michelle Hinchliffe, a former senior KPMG partner, had attended meetings while the company was deciding who would win its audit contract.
The firm had shortlisted PwC, its auditor for 32 years, and KPMG for the audit role. KPMG was formally awarded the Macquarie contract in November and is due to start work in 2028, pending Macquarie's review.
Labor senator Deborah O'Neill told the hearing that there were "many, many more" whistleblowers who have been raising concerns about alleged misconduct at KPMG with the committee.
New KPMG chair Michael Ebeid said he had been in touch with the initial KPMG whistleblower over video call two days ago.
He has defended his appointment as the new independent chair of KPMG when he was part of an "inner circle of failures", according to one of the senators.