KPMG, Deloitte Audit Quality in Australia Declines Sharply (1)

Audit quality collapsed at Deloitte LLP’s and KPMG LLP’s Australian arms in 2022, according to a new report that indicates an overall industry fall in audit standards over the year.

The Australian Securities and Investments Commission published its annual audit inspection report Friday, covering the 12 months ended June 30. This found that around half of Deloitte and KPMG’s audit files that were selected were substandard, with problems found at more than a third of the audit files inspected overall.

• Julian McPherson, national partner in charge, external audit at KPMG Australia called the inspection results “disappointing,” in an emailed statement ...