KPMG Australia CEO Andrew Yates resigns over whistleblower handling
The Story
KPMG Australia’s chief executive, Andrew Yates, will step down immediately after taking responsibility for the firm’s failure to properly respond to whistleblower allegations about misuse of client information. Senator Deborah O’Neill revealed the allegations under parliamentary privilege on 24 March, and KPMG’s chair apologized “unreservedly” to the whistleblower.
Key Facts
- Andrew Yates was appointed KPMG Australia CEO in 2021 and will be replaced on an interim basis by partner Stan Stavros.
- The head of KPMG’s audit and assurance division, Julian McPherson, will also step down and leave the company after an orderly transition.
- The whistleblower alleged KPMG improperly used confidential information from client Lendlease to win audit work with Westpac and Dexus, and that the firm repeatedly failed to act on the complaint.
- KPMG said its internal investigation that did not substantiate the allegations “was in hindsight not conducted with the necessary rigour required.”
- An external investigation by law firm Allens will continue with new evidence and expanded scope.
- The Australian Securities and Investments Commission (ASIC) is conducting a preliminary investigation into three individuals at KPMG, according to commissioner Kate O’Rourke.
- Senator O’Neill tabled a letter from Lendlease stating the developer was first made aware of the allegations in May 2025, and that an audit partner had accessed board papers deemed of “low sensitivity.”
- ASIC chair Joe Longo called the circumstances “clearly unacceptable” and said they involved a breach of auditor-client norms.
Conflicting Reports
No conflicting reports identified in the source article.
Still Unclear
What new evidence prompted the expanded scope of the external investigation, and who are the three individuals under ASIC investigation.
Misconceptions
No widespread misconceptions addressed in the source article.
Key Figures
- Andrew Yates, outgoing KPMG Australia CEO
- Stan Stavros, interim CEO
- Julian McPherson, outgoing head of audit and assurance
- Martin Sheppard, chair of KPMG Australia
- Deborah O’Neill, senator and chair of joint committee on corporations and financial services
- Kate O’Rourke, ASIC commissioner
- Joe Longo, ASIC chair
Sources: The Guardian
