KPMG Audit Scandal Puts Macquarie, Westpac Under Scrutiny
Synopsis
Macquarie and Westpac leaders are set to testify as lawmakers examine allegations that KPMG misused confidential data to secure audit contracts.
The KPMG audit scandal will see senior Macquarie Group and Westpac executives appear before an Australian parliamentary inquiry tasked with looking into the allegations of improper use of confidential client information to win audit contracts.
Macquarie Chairman Glenn Stevens, Chief Financial Officer Alex Harvey and Michael Ullmer, chair of the committee which is responsible for oversight of the audit function in Westpac, are due to be on hand. Optus and Dexus will be represented at the hearing by executives.
The KPMG audit scandal comes after whistleblower claims of data breaches of Lendlease and Optus. The inquiry is investigating allegations Lendlease material had been used in the pursuit of potential audit work for Westpac and Dexus, and Optus information was used in a bid to land Telstra's audit work.
KPMG has admitted to misuse of confidential information from Optus. Other consequences have been the resignation of senior staff at KPMG and the resignation of Westpac director Peter Nash and KPMG partner Kim Lawry.
Macquarie Reviews Audit Appointment
The KPMG audit scandal has also prompted Macquarie to review its decision to appoint KPMG as auditor in November 2025.
Macquarie's full-year profit rose 30% to A$4.847 billion in its latest result. Net operating income increased 13 per cent to A$19.477 billion and assets under management stood at A$722.1 billion.
Westpac's statutory net profit for the first half of 2026 increased by 3 per cent to A$3.414 billion from the previous year. Common equity tier-one capital ratio stood at 12.4%, while it is expected to be at 11.25% during normal operating conditions.
Audit Market Faces Wider Scrutiny
The KPMG audit scandal coincides with questions about the competitiveness and concentration of the Australian audit market.
According to the report Audit Market Structure, Concentration and Competition in Australia 2019-2022, which was commissioned and funded jointly by CPA Australia and CA ANZ, in 2022 the Big Four were paid 83% of the audit fees of Australian listed companies.
The report found that the firms audited some 96% of the 200 largest businesses in Australia, with 99% of audit fees paid.
Since then KPMG has had a change in leadership. It was appointed its first independent chairman in July by Michael Ebeid and its chief executive on July 21 by John Sams.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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