Scandal-plagued auditing firm KPMG have been dumped by Macquarie Group after its board voted it would no longer recommend the organisation as its preferred auditor.KPMG has been the centre of a parliamentary committee investigation into whistleblower allegations that its partners used confidential client data to win corporate audit contracts. The auditing firm was accused of using inside information to win work from major companies such as Macquarie Group, then sought to conceal allegations raised by a whistleblower, instead of properly investigating them.In a statement, Macquarie Group announced it would no longer recommend KPMG at next year’s annual general meeting. A Macquarie spokesman said the decision followed continued scrutiny of KPMG Australia’s audit practice, including information exposed by the Parliamentary Joint Committee on Corporations and Financial Services. “It also follows Macquarie’s formal inquiries of KPMG to consider its capacity to deliver the audit, as well as the nature and impact of ongoing issues at KPMG Australia,” a spokesman said.“The Boards currently hold concerns in respect of KPMG Australia and its audit practice in two of the key criteriaconsidered in the audit tender completed in late 2025, namely capacity to deliver the audit given several key membersof the proposed KPMG Australia audit team have departed; and culture, including a culture that transparently disclosesissues.”The company announced it would retain incumbent auditor PricewaterhouseCoopers (PwC) to deliver its global audit.KPMG chief executive John Sams said they were disappointed by the outcome but respected the decision, saying it was a clear reminder that the consequences of our past failings are real. “Rebuilding trust will require sustained action, transparency and time. I am committed to leading this change with honesty, transparency and urgency,” he said.“Macquarie’s decision underscores the importance of the sweeping program of change underway across KPMG.”Mr Sams said they had started a culture review to strengthen the firm’s governance and were make substantial leadership changes. “We are co-operating with the regulatory and parliamentary review processes and are committed to providing updates as appropriate on progress.”