ANZ Ends 57-Year KPMG Relationship Amid Audit Scandal Fallout
Major bank moves to replace its long-running auditor as allegations over confidential client data continue to reverberate across KPMG’s corporate business
ANZ has decided to end its 57-year relationship with KPMG, making the major bank the latest high-profile client to cut ties with the accounting firm following an audit scandal that has triggered significant upheaval across KPMG Australia.
ANZ said its board would begin a competitive tender process to select a new external auditor, with KPMG excluded from participating. The bank has used KPMG for its external audit since 1969, although ANZ said such a long tenure had been under review for some time.
KPMG scandal triggers major corporate fallout
The move follows allegations raised in Parliament earlier this year that KPMG had used confidential client information to help secure new audit contracts.
A whistleblower alleged that information obtained while auditing Lendlease was subsequently used to pursue other corporate work, despite the company reportedly prohibiting auditors from accessing confidential board documents.
Some of the allegations were later substantiated, while KPMG acknowledged that its internal investigations had not been conducted with the necessary rigour. The firm's former chief executive Andrew Yates and audit boss Julian McPherson subsequently left the business.
KPMG was also referred to the National Anti-Corruption Commission and faced a three-month freeze on bidding for new Commonwealth government contracts.
Client departures add to pressure
The consequences have extended beyond regulatory scrutiny, with several major corporate clients ending their relationships with KPMG.
Lendlease previously cut ties with the firm, followed by Macquarie Bank in August. ANZ's decision adds another major Australian financial institution to that list.
KPMG has reportedly earned around $24 million a year from its ANZ business, although the bank said the decision to move to a new auditor was part of a broader review of auditor tenure.
The firm also faced internal cost pressures after the Commonwealth contract freeze contributed to around 400 job cuts, equivalent to roughly 5% of its workforce.
Revenue comes under pressure
KPMG Australia's revenue fell from $2.28 billion to $2.26 billion in FY26, while chief executive John Sams has warned that further revenue declines could follow.
The latest client departures therefore add to a difficult period for the firm as it attempts to rebuild confidence among major corporate customers.
What it means for investors
For investors, ANZ's decision highlights the broader implications of audit independence, client-data controls and corporate governance. The loss of a major long-term client could also have financial consequences for KPMG as more companies reassess their auditor relationships.
The next focus will be on ANZ's tender process and whether further major corporates review their relationships with KPMG as the fallout from the scandal continues.
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