KPMG Australia's chairman and two partners resign as audit scandal widens

KPMG Australia said on Tuesday its chairman and two senior partners have resigned over the handling of whistleblower allegations the firm misused confidential client information to win audit work.



The departures of Chairman Martin Sheppard, and audit partners Paul Rogers and Eileen Hoggett, mark the latest fallout from the scandal that has engulfed the firm and has seen the firm's CEO and audit chief quit.



"The decisions announced today are necessary and immediate," interim CEO Stan Stavros said in a statement.



"We did not meet the standards expected of us, and we recognise the impact this has had on the whistleblower, our people, our clients and the community."

KPMG has been under fire after the whistleblower alleged it misused confidential board papers from real estate company Lendlease to support bids for major audit tenders.



Rogers and Hoggett were directly named by the whistleblower as the lead partners on the Lendlease auditing team involved in the misconduct, according to the whistleblower's allegations that were made public in March.



The pair are currently under investigation by Australia's corporate regulator.