Aug 26 (Reuters) – Australia’s Macquarie Group said on Wednesday it would retain PricewaterhouseCoopers (PwC) as its auditor and will not recommend the appointment of KPMG at its 2027 annual general meeting, citing concerns about the latter’s audit practices.
KPMG came under intense scrutiny from the Australian government and its blue-chip clients after whistleblower allegations in March stated that its staff used inside information to win lucrative audit contracts.
The matter also forced KPMG to undertake a leadership overhaul in mid-June with its CEO, audit boss and chairman, as well as senior audit partners stepping down.
“Macquarie’s decision underscores the importance of the sweeping program of change underway across KPMG,” KPMG Australia’s recently appointed chief, John Sams, said in an email to Reuters.
The firm has commenced a thorough review of its culture, strengthened its governance and is making substantial changes to its leadership while cooperating with regulatory and parliamentary review processes, Sams added.
(Reporting by Jasmeen Ara Shaikh in Bengaluru, Additional Reporting by Kumar Tanishk; Editing by Sonia Cheema)
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