From historical integrity breaches to AI-generated reporting errors, Chartered Accounts ANZ has confirmed multiple misconduct matters involving former and current staff at major firms, but insists it will not publish firm-level complaint data, even as federal politicians push for clearer consequences and deterrence
Australia’s peak accounting body has upheld nearly 300 misconduct complaints against staff at the country’s largest accounting firms but has declined to publicly name the organisations involved, drawing criticism from a federal senator.
Chartered Accountants ANZ (CA ANZ) reported that 200 members employed by major firms, including Deloitte, EY, KPMG, PwC, BDO, and Grant Thornton, received formal cautions over the 13 months to December, according to the Australian Financial Review. Almost 100 more received “professional reminders”, while 16 complaints resulted in no further action.
The large firms accounted for about 60% of the 516 resolved complaints, despite their members representing only 12% of CA ANZ’s 142,000-strong membership.
Most cautions and reminders were linked to conduct described as “academic misconduct or minor criminal offences”, though no further case details were provided.
Body defends silence
CA ANZ has declined to attribute complaints to individual firms, citing risks to ongoing investigations.
“The publication of firm-level investigations and complaints data for some firms may disclose the progress of PCC [professional conduct committee] investigations, and we are concerned to keep confidential any information that may undermine those investigations, the availability of evidence or prejudice proceedings,” the body said in its response to parliament.
A CA ANZ spokeswoman added that naming firms could discourage members from voluntarily reporting potential rule breaches, even though members are already required to self-report certain types of misconduct.
“CA ANZ’s disciplinary framework focuses on individual member conduct, consistent with our bylaws and international standards, and required information has been provided to parliament,” the spokeswoman said.
“Our enforcement is informed by complaints, referrals, and self-disclosures. We work with firms to reinforce members’ disclosure obligations and encourage self-reporting, which strengthens accountability. On that basis, we will not publish information that undermines due process or weakens disclosure and enforcement.”
Specific firm matters
CA ANZ did disclose limited details about specific firms in its April parliamentary response. It said it had resolved two complaints related to former Deloitte personnel over “historical integrity matters”, without detailing outcomes. The body also confirmed it was investigating Deloitte over an error-ridden report produced using artificial intelligence and provided to the government last year.
In March, CA ANZ disclosed that its disciplinary tribunal had finalised five matters involving PwC, EY, and KPMG.
The disciplinary reforms followed widespread controversy after more than 1,100 KPMG Australia partners and staff were accused of cheating on internal exams. The US audit regulator fined KPMG $US450,000 over the cheating in 2021, and CA ANZ fined eight KPMG personnel the following year.
Senator calls for transparency
Greens senator Barbara Pocock, who had requested firm-level disclosures, criticised CA ANZ’s response.
“This is a disappointing response, to say the least,” she said. “We need much greater transparency about unethical and unprofessional conduct in the big accounting firms. That includes publication by bodies like CA ANZ and their professional conduct committee of the details of those they have sanctioned for breaking the rules, the nature of their misbehaviour, and the consequences for it.”
Pocock said publishing firm names would serve to “disincentivise misbehaviour” and ensure “the lessons for misbehaviour are obvious to all, and their consequences clear and public”.
“Without such transparency, when people and organisations go off the rails, professional associations are at risk of running a protection racket for their members,” she said.
