… and takes on KPMG
ASIC is also taking legal action against KPMG over the auditing of companies involved in the Westpoint collapse.
The corporate regulator has taken its case to the Victorian Supreme Court alleging KPMG acted negligently in auditing the financial accounts of eight Westpoint companies between 2002 and 2004.
The proceedings have been commenced under section 50 of the ASIC Act, which allows it to launch actions for damages in the public interest.
ASIC’s claims “are in the order of $200 million”. It says up to 80% of Westpoint Group investors could benefit from a successful claim.
ASIC Chairman Tony D’Aloisio alleges KPMG failed to identify issues relating to the continuing solvency of the companies and failed to properly qualify the audits.
“KPMG should have notified ASIC that it had grounds to suspect that breaches of the Corporations Act were taking place within the plaintiff companies,” he said.
The corporate regulator has taken its case to the Victorian Supreme Court alleging KPMG acted negligently in auditing the financial accounts of eight Westpoint companies between 2002 and 2004.
The proceedings have been commenced under section 50 of the ASIC Act, which allows it to launch actions for damages in the public interest.
ASIC’s claims “are in the order of $200 million”. It says up to 80% of Westpoint Group investors could benefit from a successful claim.
ASIC Chairman Tony D’Aloisio alleges KPMG failed to identify issues relating to the continuing solvency of the companies and failed to properly qualify the audits.
“KPMG should have notified ASIC that it had grounds to suspect that breaches of the Corporations Act were taking place within the plaintiff companies,” he said.