Macquarie completes audit review

The Macquarie Group and Macquarie Bank boards have completed a review of Macquarie's 2025 audit tender process, in the wake of the KPMG whistleblower scandal.

The review, led by board governance and compliance committee chair Rebecca McGrath, considered documents shared with Macquarie by KPMG and an Allens report on KPMG e-comms which sought to identify any misuse of Macquarie or third-party confidential information in connection with the audit tender, or any other breach of the audit tender process rules.

"The e-comms raised additional questions around KPMG's use of Macquarie's confidential information beyond the agreed protocols of the audit tender process, evidencing the culture issues cited by Macquarie in August 2026 as one reason for no longer recommending KPMG as its preferred auditor," Macquarie said.

"McGrath's review also considered matters concerning two of Macquarie's non-executive directors, Michelle Hinchliffe and Susan Lloyd-Hurwitz. The boards sought independent advice on these matters from Tom Bathurst."

Hinchliffe met with KPMG staff before and during the audit tender process, in both a professional and personal capacity. Hinchliffe also interacted with the three firms participating in the tender process, in Macquarie's interests, but recused herself from scoring and decision-making.

Lloyd-Hurwitz sent an email to a KPMG partner during the audit tender process, seeking a meeting in relation to general careers advice for one of her children which did not eventuate. Similar requests were made to other companies from a range of industries around the same time.

Macquarie said Bathurst concluded that neither Ms Hinchliffe nor Ms Lloyd-Hurwitz breached their fiduciary or statutory duties or Macquarie's policies or rules.

"Having considered the review findings, the boards remain fully supportive of Ms Hinchliffe and Ms Lloyd-Hurwitz. They each make key contributions and their respective skills are highly valuable to the boards' effectiveness," Macquarie said.

"While the review found no breach of duties, policies or audit tender rules, the boards recognise that auditor independence, conflicts management and governance standards are of significant interest to shareholders and other stakeholders.

"The boards acknowledge the importance of considering both actual and perceived conflicts and are committed to strengthening Macquarie's approach wherever improvements can be made."

Mcquarie added that for any future audit tender process, its tender rules will be reviewed including with respect to restrictions on personal contact with participating audit firms during the tender period.

"As part of its usual annual refresh, the Board Conflicts of Interest Policy will also be externally reviewed for any potential improvements having regard to evolving best practice," it said.