ANZ to Drop Scandal-Hit KPMG Australia as Auditor After 57 Years

ANZ Group Holdings Ltd. will part ways with KPMG Australia as its longtime external auditor, adding pressure on the accounting giant that has been grappling with the fallout from allegations it improperly used confidential client information to win business.

The Melbourne-based bank “will commence a competitive tender process,” to replace KPMG as its external auditor, the lender said in a statement on Friday. ANZ has used KPMG’s external audit service since 1969 and “this length is no longer considered appropriate and has been under consideration by the Board for some time,” according to the statement.

The move marks another large client loss for KPMG Australia in the wake of claims it misused client data to bolster efforts to win contracts. In August, Macquarie Group Ltd. decided to reverse a decision to hire KPMG as its auditor. Insurance Australia Group Ltd. said this month it plans to tender for a new auditor, without inviting KPMG that has been providing services to the firm since its listing in 2000. Property giant Lendlease Corp. has also decided to drop the firm’s services.

KPMG Australia has refreshed its leadership and unveiled a plan to improve its governance following the allegations, which have been the focus of several parliamentary inquiries this year.

ANZ intends to identify a replacement auditor by the end of April 2027 with services by the new firm starting in the 2029 financial year. “Given the tenure of the incumbent provider, KPMG will not be eligible to participate in the tender process,” ANZ said in the statement. A spokesperson for KPMG declined to comment on ANZ’s decision.

Photograph: KPMG Australia offices in Sydney; photo credit: Brendon Thorne/Bloomberg

Related: