SYDNEY, May 29 - KPMG Australia said on Friday that its chief executive and the head of its audit practice have stepped down after an internal inquiry into whistleblower complaints failed to meet required standards.
The firm said CEO Andrew Yates, who began working at the company in 1990 and was appointed chief executive in 2021, resigned following an investigation into allegations made by a whistleblower about the sharing of client data. The firm stated the probe "fell short of the firm’s expectations, those of the whistleblower and the broader community."
In the same announcement, KPMG said Julian McPherson, the managing partner of audit and assurance, has also resigned and will leave the firm after an orderly transition. The statement framed both departures as an acceptance of responsibility for shortcomings identified in the review.
Yates was quoted in the firm’s statement saying: "It is clear that in this case we have let ourselves down and I take accountability." McPherson added: "Matters have arisen for which I am responsible, and I take accountability."
Context and implications
The firm’s disclosure links the leadership changes directly to the outcome of the internal investigation into the whistleblower’s concerns about client data handling. The company characterized the investigation as not meeting its own standards, nor the expectations of the whistleblower or the wider community. The announcement frames the resignations as acts of accountability in response to that shortfall.
Transition arrangements
The statement indicated McPherson will remain for a transitional period to facilitate an orderly handover. No additional detail on the duration of that transition, the appointment of successors, or operational changes was provided in the announcement.
What the firm has communicated
- The internal investigation examined whistleblower complaints alleging sharing of client data.
- The investigation was judged by KPMG to have fallen short of expectations set by the firm, the whistleblower, and the broader community.
- Both the CEO and the head of audit accepted accountability and resigned; the audit leader will depart after an orderly transition.
The company’s statement focused on accountability and the need to address shortcomings identified by the internal review. It did not provide further specifics regarding the nature of the data-sharing allegations, the timeline of the investigation, or steps the firm will take next to remediate the issues. The limited detail in the announcement leaves open questions about operational or governance changes that might follow.