By Christine Chen and Scott Murdoch

SYDNEY, July 17 (Reuters) - KPMG Australia said on Friday senior partner Kim Lawry had resigned from the firm after a client, Westpac WBC.AX — the country's second-largest bank — requested her removal as its lead auditor.

Lawry was one of three partners fined by the firm for misusing confidential board papers from real estate company Lendlease LLC.AX to support bids to win audit work, including the Westpac account.

Lawry joined KPMG in 1997, became a partner in 2009 and was appointed to the firm's Australian board in 2021, according to KPMG's website. She could not be reached for comment.

Westpac confirmed it had requested she be removed from its account.

The scandal has also led to the resignations of KPMG's CEO, audit boss and chairman, as well as senior audit partners. It is the latest in a series of scandals at the Australian arms of the Big Four accounting firms, prompting the government to announce it would be boosting its oversight of the sector.

The scandal has also led to Westpac non-executive director Peter Nash resigning from the bank's board due to his ties with KPMG. Local media reported that ‌in ⁠2023 Nash sat in on pitch meetings of auditing firms looking to secure the bank's contract.

Westpac, which paid KPMG A$32 million ($22.35 million) in the 2025 financial year, switched to the firm from PwC in 2024.

($1 = 1.4316 Australian dollars)