KPMG Australia CEO exits in whistleblower row

On May 29, 2026, KPMG Australia announced the immediate resignation of chief executive Andrew Yates. On the same date, Julian McPherson, the firm’s managing partner of audit and assurance, stood down from his leadership role and will resign from the firm after an orderly transition of client responsibilities.

KPMG’s board appointed Stan Stavros as interim chief executive while it conducts a search for a permanent replacement. The leadership changes came as the firm responded to concerns about how it handled a whistleblower’s allegations over the use of confidential client information.

The whistleblower alleged that confidential client documents were inappropriately shared internally at KPMG. The firm acknowledged that earlier internal and external probes into these complaints "fell short" of its expectations and "were not conducted with the necessary rigour."

KPMG said it had appointed law firm Allens to carry out an expanded review of the whistleblower complaints, and that this review was ongoing as of May 29, 2026. The firm issued an unreserved apology to the whistleblower and said it would strengthen its processes for handling such matters.

KPMG also disclosed a further, separate incident in which internal documents containing client information were inappropriately shared internally. The firm stated that it had reported this finding to impacted clients, regulators, professional bodies and a parliamentary committee.

KPMG chairman Martin Sheppard said the firm would engage external expertise to strengthen controls and committed to publishing an independent review of its whistleblower processes. Human-resources advisers were engaged to assess the firm’s speak-up culture.

In addition to the Allens review, KPMG engaged Principia Advisory to review its policies and processes for supporting employees who raise concerns. Sheppard committed to publishing the findings of the Principia review publicly once completed.

These steps form part of a broader effort by KPMG to address shortcomings in how concerns are raised and managed within the firm, and to improve protections and support for whistleblowers.

Separately, the Australian Securities and Investments Commission (ASIC) told a parliamentary committee that it had opened inquiries into a number of auditors who handled the whistleblower complaint. ASIC said three of those under inquiry are registered company auditors.

ASIC indicated that its initial enquiries began in April. The regulator’s focus adds an external layer of scrutiny to KPMG’s handling of the matter and to the conduct of auditors involved in the response to the whistleblower’s concerns.