KPMG Australia scandal triggers senior resignations and client departures

A whistleblower alleged that KPMG Australia improperly used confidential client data to win new business. The accusations led to the abrupt resignation of Australia chief Andrew Yates and audit head Julian McPherson, while senior executive Eileen Hoggett stepped aside from executive duties as an investigation continues.

Major clients have responded: property developer Lendlease announced it will review its audit arrangements, and fellow developer Dexus publicly said it will not allow Hoggett to sign off its accounts. The fallout highlights the firm’s reliance on its reputation for integrity in a market where audit work underpins the credibility of Australian businesses and government agencies.

The scandal has sparked parliamentary scrutiny and raised concerns about the wider audit industry’s governance, especially as KPMG shares premium office space at Sydney’s Barangaroo precinct alongside rivals such as PwC.