KPMG CEO and audit head resign after whistleblower review

The chief executive and head of audit at KPMG Australia have resigned after an independent review found the firm's investigation into a whistleblower's allegations was inadequate. The departures of CEO Andrew Yates and National Managing Partner of Audit and Assurance Julian McPherson were announced on Friday.

The executives stepped down following the findings of an external law firm, Allens, which was appointed to review KPMG's handling of a whistleblower complaint. The complaint alleged that client documents were inappropriately shared internally among senior leadership. An initial internal investigation and a subsequent external review had not substantiated the allegations, but the Allens review concluded the probe lacked the necessary rigor and fell short of the firm's standards.

In statements, both departing leaders accepted accountability. Yates said he had been committed to a "speak-up culture" but that the firm had "let ourselves down." McPherson stated that matters had arisen for which he was responsible.

KPMG Chairman Martin Sheppard issued a public apology, stating the firm apologizes unreservedly to the whistleblower and to clients whose information was not handled...