KPMG

In 2016, the Panama Papers leak revealed that KPMG had provided services to offshore companies, sparking significant global controversy. These documents highlighted how KPMG was involved in setting up offshore structures for wealthy clients to avoid tax liabilities. The leak included 11.5 million financial documents from Panama-based law firm Mossack Fonseca, causing global outrage and leading to investigations into tax avoidance strategies.

In 2017, KPMG South Africa was implicated in a scandal involving its work with the Gupta family, who were accused of state capture in South Africa. Allegations were made that KPMG helped the Gupta family dodge taxes and launder money, leading to the resignation of several senior officials within the company. This scandal severely damaged KPMG's reputation in South Africa and resulted in numerous clients ending their relationships with the firm.

In February 2018, KPMG faced a fine of £3 million from the UK's Financial Reporting Council (FRC) over its auditing of HBOS prior to the lender's collapse in 2008. The FRC found that KPMG and one of its partners, Andrew Walker, had failed to obtain sufficient audit evidence to support their audit opinions, leading to an inadequate audit. The case highlighted the need for stringent auditing standards and was part of increasing scrutiny on audit firms in the UK.

In August 2018, KPMG suffered a data breach that exposed the personal information of thousands of clients. The breach was reported to have occurred due to unauthorized access to client information stored on the company's systems. KPMG reported the breach to relevant authorities and took steps to enhance security measures across its networks. The incident underscored the vulnerabilities in handling sensitive information and raised questions about cybersecurity practices.

In April 2019, KPMG announced significant reforms to its auditing process in response to increasing regulatory scrutiny and past audit failures. The firm pledged to introduce a more stringent review of its auditing work, increase investments in technology, and ensure better oversight of its processes. The reforms were aimed at restoring trust in the firm's audit functions and came amidst calls for a separation of audit and consultancy services.

In September 2019, KPMG's involvement in the 1MDB scandal was scrutinized after it was revealed that the firm had audited 1Malaysia Development Berhad's financial statements during the years when billions of dollars were allegedly misappropriated. KPMG faced questions about its oversight and audit practices related to 1MDB, which became one of the world's largest financial fraud cases. The scandal involved the embezzlement of funds intended for development projects in Malaysia.

In response to the global COVID-19 pandemic, KPMG announced a range of policy adjustments in May 2020 to adapt to the changing work environment. These included allowing remote work for most employees, implementing new health and safety guidelines, and supporting clients in navigating the economic fallout of the pandemic. KPMG emphasized its commitment to maintaining service quality and client relationships amidst the challenges posed by the pandemic.

In February 2021, KPMG unveiled new diversity and inclusion initiatives aimed at increasing representation within the firm. The efforts included commitments to achieve specific diversity targets, create inclusive career pathways, and implement training programs to raise awareness. The initiatives were part of KPMG's broader effort to foster an inclusive work environment and address diversity challenges across its global operations.

In October 2022, KPMG was criticized in the UK for its auditing practices related to several energy companies, including British Gas. The UK's FRC launched inquiries into KPMG's audits after concerns were raised about their quality and thoroughness. The scrutiny was part of broader efforts to ensure accountability and competence in auditing, especially in sectors like energy where financial integrity is crucial for national interests.

In July 2023, KPMG announced major investments in artificial intelligence and advanced technology to enhance its service offerings. The firm emphasized the role of AI in improving efficiency and innovation in audit and consultancy services. Part of this investment included collaboration with tech companies to develop new tools. This move was seen as strategic for positioning KPMG at the forefront of technological advancements within the professional services industry.