KPMG Australia CEO Andrew Yates resigns over whistle-blower allegations
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KPMG Australia said a whistle-blower had made three complaints about client documents being shared inappropriately.
PHOTO: REUTERS
SYDNEY – Accounting firm KPMG Australia said on May 29 that its chief executive officer and head of audit quit after an investigation into complaints raised by a whistle-blower about sharing client data fell short of its standards, in a blow to the country’s professional services sector.
CEO Andrew Yates, who joined KPMG Australia in 1990 and took on the top job in 2021, resigned after its investigation into the whistle-blower’s allegations “fell short of the firm’s expectations, those of the whistle-blower and the broader community”, the firm said in a statement.
The firm’s managing partner of audit and assurance, Mr Julian McPherson, also stepped down and would leave the firm after an orderly transition, the statement added.
“It is clear that in this case we have let ourselves down and I take accountability,” Mr Yates said in the same statement.
Mr McPherson said: “Matters have arisen for which I am responsible and I take accountability.”
The departures bring new scrutiny to a sector that was rocked by reports in 2023 that rival PwC shared confidential Australian government information with prospective clients, resulting in a spin-off of the firm’s government consulting arm and multiple employee departures.
On May 29, KPMG said a whistle-blower had made three complaints about client documents being shared inappropriately and its previous investigations had found the complaints unsubstantiated. However, the firm “now recognises these processes fell short”.
The statement did not name the whistle-blower and did not say which client or clients had documents allegedly shared inappropriately.
KPMG said it had engaged a law firm and a corporate ethics consultant to review its whistle-blower policies and processes.
KPMG audits some of Australia’s biggest companies, including major banks Westpac and ANZ and investment bank Macquarie Group. Westpac, ANZ and Macquarie were not immediately available for comment.
“We acknowledge we have work to do to rebuild trust,” said KPMG Australia chairman Martin Sheppard. “That’s why we are not asking anyone to take our word for it, and we are inviting scrutiny and challenge on our remedial actions.” REUTERS
