Macquarie reviews policy after KPMG audit probe
- Macquarie will review its board conflict of interest policy after an investigation into KPMG's audit tender process.
- The review follows findings that confidential bank information was misused, leading Macquarie to retain PwC for its $100 million annual audit contract.
- An independent legal probe cleared directors Michelle Hinchliffe and Susan Lloyd-Hurwitz of any legal or policy breaches during the tender process.
Macquarie (ASX:MQG) will review its board conflict of interest policy following an investigation into KPMG's handling of confidential information during a recent audit tender.
The decision comes after the bank cancelled its plans to appoint KPMG as its new auditor in August, opting instead to retain PwC for an $100 million annual contract.
"The investigation found no evidence that directors breached their statutory duties or Macquarie policies," stated Macquarie Chairman Glenn Stevens.
Former NSW Supreme Court Chief Justice Tom Bathurst cleared directors Michelle Hinchliffe and Susan Lloyd-Hurwitz of any wrongdoing regarding their electronic communications and contact with KPMG partners.
The bank stated that the external review will ensure its tender rules and board conflict policies align with evolving best practice standards.
Following the announcement, the Macquarie share price was unchanged at $251.105.
Macquarie previously awarded the contract to KPMG last year, which marked the first time in over 30 years the financial institution selected an auditor other than PwC.
The parliamentary enquiry into audit misconduct questioned the bank's governance procedures after six separate contacts between Hinchliffe and KPMG representatives were disclosed during the tender period.
