Macquarie board rejects KPMG as auditor

Macquarie's board has rejected KPMG as its auditor starting 2027 and will instead proceed with incumbent auditor PricewaterhouseCoopers (PwC).

This comes after Macquarie chair Glenn Stevens was grilled at the August 14 parliamentary hearing over the bank's reliance on Allens, KPMG's own lawyers, to review the embattled auditor's conduct. The investment giant was formally inquiring into KPMG's capability to deliver its audit, as well as the conduct of the audit itself.

Senator Paul Scarr called Allens review of KPMG for Macquarie "hopelessly conflicted".

Stevens was also questioned over Macquarie audit committee chair Michelle Hinchliffe, a KPMG veteran, and her involvement in the tender process.

Macquarie said the decision follows continued scrutiny of KPMG Australia's audit practice, including information exposed by the Parliamentary Joint Committee on Corporations and Financial Services.

"It also follows Macquarie's formal enquiries of KPMG to consider its capacity to deliver the audit, as well as the nature and impact of ongoing issues at KPMG Australia," Macquarie said.

"The boards currently hold concerns in respect of KPMG Australia and its audit practice in two of the key criteria considered in the audit tender completed in late 2025, namely capacity to deliver the audit given several key members of the proposed KPMG Australia audit team have departed; and culture, including a culture that transparently discloses issues."

KPMG said while this was a disappointing outcome, it respects the decision taken by Macquarie.

KPMG chief executive John Sams said: "[The] announcement by Macquarie is a clear reminder that the consequences of our past failings are real. Rebuilding trust will require sustained action, transparency and time. I am committed to leading this change with honesty, transparency and urgency.

"I recognise that this news will be difficult for many of our people, particularly those who worked on the tender and transition, but we will rebuild confidence by facing the issues directly, learning from them and delivering lasting change."

The embattled global consulting firm has been under scrutiny for misusing confidential client information to pursue audit tenders, including those of Westpac and Dexus. The details were brought forward by a whistleblower, and KPMG has admitted its investigation into the claims fell short.