KPMG has acknowledged significant cultural failings following a whistleblower scandal that exposed misconduct within its audit division. An independent report commissioned by the firm found that KPMG’s response to a whistleblower who raised concerns about senior audit partner behavior was inadequate, describing the firm’s approach as “overly legalistic” and failing to properly manage conflicts of interest or support the employee who reported the issues.
The matter came to public attention more than two years after the whistleblower initially raised concerns, when Labor senator Deborah O’Neill revealed the allegations under parliamentary privilege. The claims, which included misconduct by senior audit partner Eileen Hoggett—specifically her alleged misuse of confidential client board documents to win new business—were largely corroborated by the subsequent investigations.
The report, prepared by the Andrews Group and published in September 2026, identified broader cultural problems within KPMG’s audit team. These included the acceptance of free concert tickets from clients and overly close relationships with former KPMG partners who had joined client boards. The findings prompted six key recommendations, all of which received support from KPMG’s senior management.
Among the recommendations are a review of KPMG’s stated values to better understand underlying cultural drivers, the appointment of an independent whistleblower protection officer, the establishment of an internal integrity office with authority over ethical matters, and a full review of the firm’s whistleblower program. Ethics specialist Dennis Gentilin, who contributed to the report, stated that KPMG failed to protect the whistleblower, evident from the fact that the employee lost their job while others implicated retained benefits or left with unclear outcomes.
Former KPMG executives, including then-chief executive Andrew Yates, chairman Martin Sheppard, and head of audit Julian McPherson, resigned but received full retirement benefits. Hoggett was the only senior figure dismissed and is currently pursuing legal action against the firm. Another audit partner, Kim Lawry, remains uncertain about her employment status and retirement entitlements.
New KPMG CEO John Sams and independent chairman Michael Ebeid acknowledged the report’s findings in their foreword, admitting that senior staff behaved in ways inconsistent with the company’s values and that the firm’s response to the whistleblower was inadequate. They expressed remorse and committed to learning from the experience, though they maintained that KPMG’s existing values did not require change.
KPMG has taken steps to address the issues identified in the report. The firm has retained Principia Advisory to further examine the cultural factors contributing to the failings and plans to publicly release those findings. Efforts are underway to develop formal roles and governance frameworks for the whistleblower protection officer and the integrity office recommended by the Andrews Group. The integrity office is envisaged as having broad oversight over ethical decisions beyond whistleblower matters.
On legislative reform, KPMG has indicated support for stronger statutory whistleblower protections. The firm made a submission to the Treasury in July 2026 advocating for expanded protections and pledged to provide the Andrews Group report to assist government considerations. Industry bodies have also called for an independent whistleblower protection office that would operate separately from employers and regulators to better support individuals raising concerns.
While KPMG’s leadership recognizes the challenges ahead, they emphasize the need for courage, humility, and resilience to implement meaningful change. The Andrews Group report itself noted its focus was limited to a single whistleblower case and described its conclusions as hypotheses supported by evidence rather than definitive findings, underscoring the complexity of the issues involved.