KPMG issues partners penalties over audit leaks

• KPMG has hit seven workers and partners with individual financial penalties reaching as high as $180,000.
• The sanctions represent an escalation in the scope of punishments issued during the firm's client data leak scandal.
• The firm implemented the severe internal penalties to penalise the misuse of confidential client information and to address strict corporate standards.

Professional services firm KPMG penalised seven personnel with financial sanctions as high as $180,000 for misusing confidential data from Optus during a failed bid to secure an external audit contract from Telstra (ASX:TLS).

The firm previously penalised three other audit partners with significantly lower fines ranging from $19,000 to $40,000 for viewing confidential board papers from Lendlease prior to bidding on separate contracts.

"The conduct is unacceptable and inconsistent with our values, policies and obligations to protect client information," a KPMG spokesman said.

The penalties follow a fresh independent investigation by law firm Allens that substantiated whistleblower allegations regarding data sharing between teams auditing Singtel-owned Optus and the group bidding for the $15 million-a-year Telstra contract.

The broader audit leak scandal has led to a temporary ban on the firm bidding for new government work alongside the departures of former chief executive Andrew Yates, chairman Martin Sheppard, and national head of audit Julian McPherson.

The firm is implementing tougher self-regulation measures as the Australian federal government consults on potential legislative changes that could allow regulators to impose heavy structural penalties on large accounting partnerships.