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FED:KPMG flayed for 'insulting' refusal to hand over docs

The chair of a major consulting firm has been hauled over the coals after refusing to hand over documents linked to a whistleblower and audit leak scandal.

KPMG is feeling the heat over an audit breach furore and the alleged mistreatment of the staff member, which is being probed by a senate committee.

The company has denied the inquiry access to investigation documents, citing confidentiality, professional privilege and the risk of prejudicing the administration of justice.

Committee head Deborah O'Neill told KPMG chair Martin Sheppard, who made the decision, it was "outrageous".

"Mr Shepherd, do you understand how we find it hard to tolerate when ... you say you've got a commitment to transparency and then you're hiding, you are reserving legal professional privilege," she told him during a hearing in Canberra on Friday.

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