KPMG Australia said it was disappointed by Macquarie Group Ltd.'s decision to abandon plans to appoint it as auditor, as a deepening fallout engulfs the scandal-hit audit and consulting firm.
That comes as Macquarie outlined plans earlier Wednesday to retain PricewaterhouseCoopers as its auditor, a move that adds to the challenges facing KPMG.
"Today's announcement by Macquarie is a clear reminder that the consequences of our past failings are real," KPMG Australia Chief Executive Officer John Sams said in a
Macquarie said it will no longer recommend to its shareholders to appoint KPMG as its auditor at its 2027 annual general meeting, according to its statement on Wednesday. Macquarie reconfirmed PwC's ongoing capacity to deliver its global audit, it said.
The Australian financial services firm's decision is particularly striking given PwC was also engulfed in its own tax-leaks scandal in Australia in
KPMG Australia has been battling the fallout from allegations it misused confidential information from companies including property developer Lendlease Group to win contracts with other corporate clients.
"I recognize 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," Sams said about the loss of the lucrative contract. Just this week, the firm
Earlier this month, Macquarie Chairman Glenn Stevens told a parliamentary hearing that the firm had sought additional information from KPMG and was reconsidering the appointment. Stevens testified before a parliamentary inquiry in Canberra examining allegations that KPMG mishandled whistleblower complaints. He said it was important to determine whether any information had been improperly used in KPMG's pursuit of the Macquarie audit mandate.
