The chief executive of KPMG’s Australian arm and its national audit leader have resigned after the Big Four firm admitted its investigation into whistleblower allegations of data misuse had fallen short of its standards, according to the Financial Times.

Andrew Yates, chief executive of KPMG Australia, resigned with immediate effect on Friday, alongside Julian McPherson, national managing partner for audit and assurance, the FT reported. KPMG said its internal probe into the whistleblower’s claims “was in hindsight not conducted with the necessary rigor required,” according to the outlet. Yates, who had previously voiced public support for whistleblowers in the wake of an earlier scandal at PwC, said the firm had let itself down in this case.

The Australian Securities and Investments Commission, known as ASIC, said Friday it had opened an investigation into the matter.

KPMG’s audit business in Australia has been under scrutiny since March, when Senator Deborah O’Neill used parliamentary privilege to air whistleblower allegations that the firm had accessed and shared confidential audit information to win contracts from rival bidders, according to the FT. The allegations included claims that KPMG staff accessed confidential board papers from property developer Lendlease, an audit client, to pursue contracts with other companies, including Westpac and Macquarie.

KPMG ultimately convinced both institutions to exit relationships with PwC, according to the report. 

Further claims aired by O’Neill included serious concerns about the integrity of KPMG’s pursuit of the Macquarie audit and other instances of inappropriate data-sharing between staff in seeking new work, the newspaper said.

The whistleblower, a former KPMG audit employee, first reported their concerns in 2024. KPMG’s internal investigation did not substantiate the allegations, and an external legal review supported those findings, according to the FT. Further contact from the whistleblower with independent board members prompted a third, ongoing investigation by another external law firm.

KPMG had previously described the whistleblower accusations as unsubstantiated but had imposed sanctions on some of its staff in April.