Big Four Accounting Firm KPMG Announces Cost-Cutting Plan Amid Whistleblower Scandal
KPMG's cost-cutting plan, dubbed 'Project Vector', is set to slash staff and costs as the accounting firm prepares for a financial lifeline from its global parent. The plan, initially targeting about two dozen partners and 450 staff, will be signed off by KPMG's board next week.
Meanwhile, Evergrande liquidators are challenging Hong Kong's securities market regulator over a HK$1 billion (US$128 million) settlement with auditor PwC. The regulators defended the settlement, stating they have unfettered powers to enforce discipline and protect independent investors' interests.
KPMG has also ceased providing whistleblower services for its big-name audit clients following changes in auditing rules. The firm cited the rule change as an obstacle to offering the FairCall service, which was previously provided to the Reserve Bank of Australia (RBA).