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ANZ drops KPMG as auditor after almost 60 years, opens contract to tender

The bank ends a relationship dating to 1969 in the latest corporate blow to KPMG over its whistleblower scandal

By LineZotpaper
Published
Read Time1 min
Sources2 outlets
ANZ has ended KPMG's almost 60-year tenure as its external auditor, announcing it will put the audit contract out to tender in the latest corporate blow to the consulting firm over its whistleblower scandal.

ANZ has dropped KPMG as its external auditor after almost 60 years, opening the contract to tender in another sign of fallout from KPMG's whistleblower scandal.

The bank's board announced the decision on Friday. A spokesman said ANZ's external audit service had been provided by KPMG since 1969, attributing the decision to the length of the relationship and not mentioning the whistleblower case. The announcement follows Macquarie Bank's decision to ditch KPMG from the nation's biggest audit contract, and is the latest in a series of blows that have included senior staff departures, mass layoffs and legal action from a sacked executive.

The scandal centres on an anonymous KPMG whistleblower who warned the firm of serious allegations, including that senior partners had misused confidential information to win work. The whistleblower was given short shrift until Senator Deborah O'Neill went public with the allegations earlier this year. Since then, KPMG has lost clients and faced increasing disruption across its Australian operations.

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Analysis

Why This Matters

  • A major bank ending an audit relationship that has lasted nearly 60 years raises questions about how long auditors should serve and how boards respond to governance scandals.
  • For KPMG, losing ANZ as a client adds financial and reputational pressure at a time when it is already shedding staff and defending itself against legal action.
  • The decision may encourage other Australian companies to review their own long-running audit arrangements.

Background

KPMG has been under pressure since an anonymous whistleblower alleged that senior partners misused confidential information to win work. The complaint was initially ignored until Senator Deborah O'Neill made the allegations public earlier this year. Since then, companies including Macquarie Bank have cut ties with the firm, and KPMG has faced senior staff departures, mass layoffs and a lawsuit from a sacked executive.

Key Perspectives

ANZ: The bank has framed the move as a matter of tenure rather than a response to the whistleblower scandal. It has opened the audit contract to tender, allowing other firms to compete for work KPMG has held since 1969.

KPMG: The firm is not quoted responding to the announcement. It has already lost Macquarie as a client and is dealing with internal disruption, including senior departures, layoffs and legal proceedings brought by a former executive.

Critics and observers: The case highlights what can happen when whistleblower complaints are not taken seriously. A senator had to intervene before the allegations became public, and the fallout has now reached some of KPMG's biggest clients.

What to Watch

  • Whether other major Australian companies follow Macquarie and ANZ in reviewing KPMG's audit contracts.
  • The outcome of the tender for ANZ's external audit, including which firms bid for the work.
  • Further developments in the whistleblower case, including the sacked executive's legal action and any additional findings from KPMG's own review.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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