KPMG Australia has announced plans to establish a new Integrity Office and appoint a whistleblower protection officer as part of an expanded programme of governance and cultural reforms following its confidential-information scandal.
The measures form part of an updated Action Plan, published on 9 October 2026, which incorporates recommendations from independent reviews commissioned after allegations emerged that KPMG personnel had misused confidential client information and mishandled whistleblower disclosures.
The revised plan builds on reforms announced in June, when KPMG committed to strengthening independent oversight, changing senior leadership and reviewing its whistleblowing arrangements.
New Measures and Independent Oversight
The latest changes include plans for an Integrity Office and a designated whistleblower protection officer, alongside further measures to strengthen accountability and external scrutiny.
KPMG says its updated programme addresses three areas: governance and leadership, culture and conduct, and controls and assurance.
The firm has already implemented several significant governance changes. Michael Ebeid became its first independent chairman in August, following amendments to the partnership agreement approved by partners.
The reforms also envisage greater independent representation on KPMG Australia’s National Governance Board and increased independent involvement in oversight and executive appointments.
Dr Kerry Schott, a former senior Australian public servant, continues to provide independent advice and challenge to the board as it oversees implementation of the Action Plan.
External Reviews Identify Further Improvements
The revised plan incorporates findings from several external assessments.
Principia Advisory’s review of KPMG’s ethical culture and whistleblowing arrangements produced 26 findings and 14 recommendations, all of which the firm says it has accepted.
Separately, the Andrews Group completed a review of KPMG’s handling of a whistleblower disclosure. KPMG says its board accepted all six recommendations.
Chartered Accountants Australia and New Zealand has also completed a quality review examining the firm’s systems for handling confidential client information and promoting ethical conduct. KPMG says it has accepted the review’s suggestions for further improvement.
The firm has committed to publishing regular progress reports and sharing them with regulators and other relevant stakeholders.
Fallout From the Confidentiality Scandal
The reforms follow months of scrutiny over KPMG Australia’s handling of confidential information and its response to allegations raised by a whistleblower.
The controversy prompted leadership departures, parliamentary scrutiny and restrictions on the firm’s ability to secure new Australian Commonwealth government work.
KPMG’s response has included changes to its senior management, revised confidentiality policies and the introduction of additional independent oversight.
The Australian Department of Finance separately commissioned an independent review led by former senior public servant Dr Ian Watt to assess aspects of KPMG’s culture, ethics, integrity and governance.
The October Action Plan sets out further commitments by the firm, but the effectiveness of the reforms will depend on their implementation and the findings of continuing independent scrutiny.
This is part of Big4News’ continuing coverage of the KPMG Australia Audit Leak Scandal.
KPMG Australia Audit Leaks Scandal
The KPMG Australia audit-leaks scandal, which erupted publicly in March 2026, has developed from a whistleblower’s contested allegations into an established pattern of misconduct, investigative failure and governance weakness. It represents one of the most serious integrity crises to hit the Big Four in Australia since the PwC tax leaks affair.
About Claudine Cassar
I’m a corporate anthropologist and former Deloitte equity partner. I sold my technology business to Deloitte in 2016 and led the Malta Consulting team for five years. I am the founder and editor of Big4News, which provides independent, clear analysis of PwC, Deloitte, EY, and KPMG — free from corporate spin.
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