Macquarie Group is reconsidering its decision to appoint KPMG as its next auditor, following a confidentiality scandal in which KPMG partners allegedly misused confidential client data. The audit contract, valued at approximately $75 million annually, was awarded to KPMG in November 2025, with KPMG set to become Macquarie's auditor for the financial year beginning April 1, 2027 (FY28).
Macquarie chairman Glenn Stevens told a parliamentary inquiry that the group has asked KPMG to determine if confidential information from other audit clients was used to help KPMG secure the Macquarie tender. Stevens stated there is still time for Macquarie to "revisit" its decision. The critical question for Macquarie is whether the misconduct within KPMG influenced the process by which it won Macquarie's audit.
Law firm Allens is reviewing over 130,000 electronic communications to investigate impropriety in KPMG's pursuit of the mandate. This arrangement has drawn scrutiny because Allens also acts for KPMG. Additionally, Macquarie is assessing KPMG's ongoing capability and capacity to conduct the audit, given that KPMG Australia's chief executive, national audit leader, and chairman have all resigned since the scandal escalated.
The audit selection process itself faced scrutiny due to Macquarie's Board Audit Committee chair, Michelle Hinchliffe, having spent 37 years at KPMG, retiring in February 2022. While she participated in presentations by competing firms, she recused herself from scoring and the final decision. The scandal has already seen other major companies like Westpac, Dexus, and Optus express doubts about KPMG's trustworthiness and the integrity of its audit processes.
Confidential information from other KPMG audit clients, such as Lendlease and Optus, was reportedly misused in bids for work with Westpac, Dexus, and Telstra. KPMG has acknowledged failings in handling confidential material and its response to the whistleblower. This incident highlights a significant reversal for KPMG, as a scandal centered on the handling of confidential information during the pursuit of audit work now threatens a major $75 million annual contract it recently secured.
