The firm is also claiming legal professional privilege to shield its internal investigations into the scandal from the corporate regulator and parliament.

The Finance Department warned KPMG it could be banned from Commonwealth contracts for repeatedly failing to notify officials about allegations of client data misuse.

The firm is also claiming legal professional privilege to shield its internal investigations into the scandal from the corporate regulator and parliament.

The professional services network’s ability to audit its own behaviour has come up woefully short.

The firm had refused to reopen inquiries into whether confidential information was being used to win work, claims that were ultimately proved correct.