Macquarie Group has announced it will drop KPMG as its auditor amid an ongoing scandal over the firm’s handling of confidential information. The financial group said its board held concerns about KPMG’s auditing practices, citing continued scrutiny that has included information exposed by a parliamentary committee examining corporations and financial services, as well as its own formal enquiries into the firm’s capacity to deliver the audit.
The board said it would instead recommend the incumbent auditor, PwC, at the company’s annual general meeting. The decision marks a significant setback for KPMG at a moment when its leadership is under pressure to demonstrate accountability, and it underscores how questions over governance and trust can quickly reshape long-standing corporate relationships.
In response, KPMG acknowledged the move. Its chief executive, John Sams, described the announcement as a clear reminder that the consequences of the firm’s past failings were real. Rebuilding trust, he said, would require sustained action, transparency and time, and he committed to leading that change with honesty and urgency, a statement that framed the episode as a test of leadership as much as of audit practice.
The firm has faced scrutiny over the alleged misuse of client data and other misconduct since a whistleblower brought concerns forward in 2024. Public documents released by the parliamentary committee, shared with the whistleblower’s consent, detail the nature of the allegations, including claims that the firm mishandled the initial complaints. The whistleblower told the committee they had attempted to raise the issues internally with partners, the head of audit, senior leadership and independent directors before escalating them.
Among the more serious allegations were claims that confidential board papers had been stored and used in the pursuit of major audit tenders. The whistleblower said these were not minor employment matters, and ultimately turned to the corporate regulator and a senator, prompting the parliamentary inquiry. The next public hearing in the matter is scheduled to take place in Sydney in early September, keeping the spotlight on how the firm’s leaders respond in the months ahead.
