KPMG Australia announced on May 29 that CEO Andrew Yates and managing partner of audit and assurance Julian McPherson have resigned following an internal investigation into whistleblower allegations about client data sharing that fell short of expectations [1, 2, 3, 4].
Andrew Yates joined KPMG Australia in 1990 and became CEO in 2021. He said, "It is clear that in this case, we have let ourselves down and I take accountability" [1, 2, 3, 4]. McPherson also acknowledged responsibility, stating, "Matters have arisen for which I am responsible, and I take accountability" [1, 2, 4]. McPherson will leave after an orderly transition period [1, 2, 3, 4].
The whistleblower made three complaints regarding inappropriate sharing of client documents within KPMG Australia [4]. The initial internal investigation cleared the complaints but was later recognized by the firm as lacking necessary rigor and falling short of firm, whistleblower, and community expectations [3, 4]. KPMG Australia engaged an external law firm and corporate ethics consultant to review its whistleblower policies and handling processes following the incident [4].
The Australian Securities and Investments Commission (ASIC) has launched a preliminary investigation into the conduct of several KPMG registered company auditors connected to the client document sharing allegations [3, 4]. However, ASIC chair Joe Longo, who will leave his role on May 31, said the regulator was not involved in the KPMG leadership resignations [4].
KPMG Australia provides audit services to major Australian companies including Westpac, ANZ, and Macquarie Group [4]. The firm has pledged to strengthen its internal processes in response to the whistleblower concerns.
ASIC informed a parliamentary committee of its ongoing investigation on May 29, the same day the resignations were announced. Joe Longo is scheduled to step down as ASIC chair on May 31 [3, 4].
