Westpac board unaware of KPMG audit misconduct allegations until parliament

Westpac's board learned about serious allegations against its auditor KPMG only when a senator read them aloud in parliament in March. One director, Peter Nash, had received a warning earlier but did not tell his colleagues. Nash is a former KPMG partner. He also stayed at the home of KPMG's chairman while the firm was competing for Westpac's $25 million audit contract. KPMG had told Nash there was nothing to worry about. The allegations came from a whistleblower who said senior KPMG partners used private files from one client, Lendlease, to win work with other companies. Nash later resigned because of his clear conflict of interest. KPMG's chief executive, audit head, and chairman have all since resigned after the document misuse was confirmed.