KPMG Australia is confronting another turbulent week as two senior executives depart the firm and new allegations surface regarding its treatment of whistleblowers, just days before a scheduled parliamentary hearing.

General counsel Louise Capon and head of HR Dorothy Hisgrove have stepped down. Their departures come as the firm braces for renewed scrutiny over how it handled misconduct allegations within its audit division.

The exits follow revelations that KPMG paid more than $500,000 to a former senior manager who had raised allegations of wrongdoing in the firm's tax division. The payment was reportedly subject to confidentiality provisions. The claims include allegations involving secret commissions and misuse of client funds, though these remain unproven allegations rather than established findings.

Meanwhile, documents released ahead of Friday's parliamentary hearing have cast further doubt on the firm's handling of an audit whistleblower. According to reports, KPMG provided law firm Ashurst with only limited information about the allegations, even though the firm had already obtained more detailed material and conducted its own internal investigation.

This is particularly notable given that KPMG has already acknowledged shortcomings in its whistleblower processes, including failures in complaint management and insufficient investigative rigour. Several senior figures have departed in connection with the ongoing controversy, including former CEO Andrew Yates and former chairman Martin Sheppard.

The hearing forms part of a broader Senate inquiry into the consulting and audit industry that gained momentum following the PwC tax leaks scandal, which saw a former partner share confidential government tax plans with clients. That case prompted reforms including a new regulatory framework for auditors and tighter controls on conflicts of interest within the Big Four firms operating in Australia.

New chairman Michael Ebeid now faces the challenging task of defending the firm's governance structures while attempting to move past the scandal. He has also issued an apology to Senator Deborah O'Neill after previously characterising her claims about KPMG as false.

With Parliament scheduled to question KPMG on Friday, attention is increasingly turning from individual misconduct allegations toward the firm's broader governance practices, legal processes, and overall treatment of whistleblowers. The inquiry's findings could influence further legislative action on whistleblower protections and audit firm regulation, areas where Australia's current framework has faced criticism from advocacy groups for lacking sufficient enforcement powers.