ASIC names two KPMG partners it is formally investigating over audit scandal

ASIC chair Sarah Court appearing before Senate estimates today. (ABC News: Joel Wilson)

ASIC has named KPMG's former chief operating officer Eileen Hoggett and audit partner Paul Rogers as two of the individuals it is investigating over the audit scandal.

ASIC told a Senate estimates committee today it was formally investigating KPMG and that it still had eight current contracts with the firm.

Current and former KPMG partners will appear before a parliamentary inquiry later this month.

ASIC has named two of the registered KPMG auditors, or partners, it is formally investigating regarding the firm's auditing scandal.

During an appearance at Senate estimates on Friday, Greens senator Barbara Pocock asked ASIC to confirm it was investigating audit partner Paul Rogers and former chief operating officer Eileen Hoggett.

"There are currently just two registered company auditors that are the subject of our formal investigation and those are the names you put to me — Mr Rogers and Ms Hoggett," ASIC chair Sarah Court told the committee.

"We are currently making a range of preliminary investigations into others but we haven't reached the level of a formal investigation yet.

"These issues are evolving as we speak and we are very happy to be as open as we can with the committee as these inquiries continue."

Eileen Hoggett quit her senior role on Wednesday, after chief executive Andrew Yates and head of audit Julian McPherson resigned over the scandal last week.

Eileen Hoggett quit her senior role with KPMG this week. (Source: kpmg.com)

KPMG has admitted to "mishandling" an internal whistleblower's allegations, which claimed client documents were being inappropriately shared internally.

The allegations were brought to the attention of senior management in 2024, and several investigations followed.

However, KPMG admits they "fell short of the firm's expectations", and chair Martin Sheppard apologised to the whistleblower in a statement last week.

ASIC chair Sarah Court told the committee the corporate watchdog is now formally investigating KPMG, after it began initial inquiries in April.

"We've now commenced a formal investigation this week in relation to KPMG and a number of the registered company auditors that sit within it," Ms Court said.

KPMG is under fire after publicly aired revelations by a whistleblower that auditors at the firm had misused confidential client documents. (Four Corners)

ASIC was grilled by Greens senator Barbara Pocock about why it had entered contracts with KPMG after it had commenced proceedings against the firm.

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