Australian insurer IAG rules out reappointment of KPMG as external auditor

By Reuters News

Sept 18 (Reuters) - Insurance Australia Group IAG.AX said on Friday that KPMG will not be invited to take part in its upcoming tender for external audit services, becoming the latest major Australian company to distance itself from the firm.


Here are some more details:

  • IAG said it would conduct the tender process during 2027.

  • The firm said its decision to run a tender was driven by auditor tenure, adding that KPMG has served as the insurer's external auditor since its ASX listing in 2000.

  • KPMG has been under fire from regulators and clients since March, when whistleblower claims surfaced that staff misused confidential information to secure audit deals, triggering resignations of the firm's CEO, audit boss and chairman.

  • IAG's move follows a similar decision by Macquarie Group in August, which said it would not recommend KPMG's reappointment as auditor at its 2027 annual general meeting, citing concerns about the firm's audit practices.

  • KPMG did not immediately respond to a Reuters request for comment.

  • IAG did not disclose which firms would be invited to participate in the tender process.

  • Shares of IAG were last down 0.7% at A$8.045


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