International Law

ASIC sues KPMG over Westpoint audit

ASIC has commenced action in the Supreme Court of Victoria against accountancy firm KPMG over its auditing of companies in the Westpoint Group which collapsed in early 2006 with losses in excess of $300 million. The action is being taken on behalf of eight Westpoint companies.

The claims are for negligent conduct by KPMG of audits of the financial accounts of various Westpoint companies for the years ended 30 June 2002, 2003 and 2004 and are for up to $200 million.

The civil proceedings have been launched under section 50 of the ASIC Act, which enables ASIC to commence proceedings for damages in the public interest.

ASIC has already separately commenced actions against directors and officers of the Westpoint Group as well as a trustee and several financial services licensees.

ASIC Westpoint website

Full post as published by Australian Regulatory Compliance Review on October 13, 2008 (boomark / email).