KPMG Australia COO steps down as audit scandal deepens

Hoggett will continue her tenure as an audit partner despite stepping back from executive duties, according to an internal email sent by interim CEO Stan Stavros. Her departure follows the recent resignations of the firm’s chief executive and head of audit, both of which stemmed from the mishandling of whistleblower claims regarding the firm’s conduct. The allegations suggest that confidential board papers belonging to real estate firm Lendlease were utilized to bolster bids for major audit tenders at Westpac and Dexus. Senator Deborah O'Neill previously identified Hoggett and partner Paul Rogers as the individuals who allegedly secured the sensitive documents.

This leadership crisis arrives amid heightened scrutiny of Australia’s professional services sector, still reeling from the 2023 PwC government information leak. KPMG is now facing a preliminary investigation by the Australian Securities and Investments Commission into three of its registered auditors. A parliamentary hearing is set for June 19 to address the claims. In his correspondence to staff, Stavros acknowledged that the firm’s initial response to the whistleblower allegations was inadequate, warning that the organization must prepare for sustained public and regulatory pressure.