KPMG Australia CEO Andrew Yates Steps Down Amid Whistleblower Scandal Investigation

KPMG Australia’s chief executive, Andrew Yates, has stepped down immediately, taking responsibility for the consultancy firm’s inadequate handling of whistleblower allegations concerning the misuse of client information.

Yates announced his departure Friday morning in a statement where he affirmed his commitment to fostering a “speak-up culture” within the firm. However, he acknowledged, “It is clear that in this case we have let ourselves down and I take accountability.” He had assumed the role of KPMG Australia CEO in 2021.

Julian McPherson, head of the firm’s audit and assurance division, will also leave the company after “an orderly transition of his client responsibilities.”

KPMG stated it continues to investigate “a matter relating to client documents being inappropriately shared internally,” acknowledging that its internal reviews did not meet the required standards. The firm confirmed that its treatment of the whistleblower and the subsequent investigation “fell short of the firm’s expectations, those of the whistleblower and the broader community.”

“The initial internal investigation, which did not substantiate the allegations raised by the whistleblower, was in hindsight not conducted with the necessary rigour required,” KPMG admitted.

The Australian Securities and Investments Commission (ASIC) informed a parliamentary committee Friday morning that it is conducting “a preliminary investigation into the allegations about the conduct of a number of the registered company auditors at the firm KPMG.”

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