Macquarie dumps KPMG from the nation’s biggest audit contract

KPMG has been dumped as the incoming auditor of Macquarie Group, costing the firm a contract that was expected to be worth $700 million over the next decade and marking the biggest blow yet from its whistleblower scandal.

Macquarie told the ASX on Wednesday afternoon that it had determined to “no longer recommend” the appointment of KPMG as auditor” at next year’s shareholder meeting and will instead retain rival firm PwC.

“The decision follows continued scrutiny of KPMG Australia’s audit practice, including information exposed by the Parliamentary Joint Committee on Corporations and Financial Services,” Macquarie’s spokesman said. “It also follows Macquarie’s formal enquiries of KPMG to consider its capacity to deliver the audit, as well as the nature and impact of ongoing issues at KPMG Australia.”

The group said its directors currently hold concerns which includes KPMG’s capacity to deliver the audit given several key members of the proposed KPMG Australia audit team have departed; “and culture, including a culture that transparently discloses issues.”