Overview
- KPMG accepted the immediate resignations of chief executive Andrew Yates and national managing partner of audit Julian McPherson on Friday and named partner Stan Stavros as interim CEO while it searches for a permanent replacement.
- The firm says its initial internal investigation and an earlier external legal review lacked necessary rigour, and a subsequent Allens inquiry has identified at least one additional incident of internal sharing of confidential client documents.
- ASIC has opened a preliminary investigation into the conduct of several registered company auditors involved in the matter and has identified three of the four people named as falling under its oversight.
- A letter from Lendlease, tabled in parliament, alleges KPMG staff retained and used Lendlease board papers, including audit tender materials, to inform a bid for Westpac’s audit, a claim KPMG has reported to affected clients and regulators.
- KPMG has apologised to the whistleblower, notified clients and professional bodies, said it will hire an ethics consultant and strengthen controls, and now faces possible reputational and procurement consequences following the wider scrutiny sparked by the case.