When the Auditors Are Not Audited
I was watching a report about KPMG Australia recently, and the irony was too heavy to ignore. The case, as reported, is not about a collapsed country, not about people losing their life savings, not about a national currency evaporating, and not about an entire population being thrown into poverty. It is about the alleged misuse of confidential information: board papers from Lendlease, reportedly used to gain an advantage in audit bids for major clients such as Westpac and Dexus. Still, look at what happened. The CEO resigned. The chairperson resigned. The head of audit resigned. Partners directly involved stepped down. Parliamentary hearings took place. Regulators moved. The whistleblower, after being badly treated, became part of the public discussion. In short, a professional misconduct scandal was treated as a scandal. Now, let us look at Lebanon. The World Bank described Lebanon’s financial collapse as possibly among the three worst economic crises globally since the mid-nineteent...