Andrew Yates, the chief executive of KPMG Australia, has reportedly stepped down immediately following concerns over the firm’s handling of allegations regarding misuse of client data.

The situation emerged after whistleblower claims prompted the Australian Securities and Investments Commission (ASIC) to announce a preliminary investigation into the conduct of several of KPMG’s registered company auditors.

The investigation was publicly confirmed during a Federal Parliament joint committee hearing, where commissioners including ASIC chair Joe Longo and deputy chair Sarah Court provided details.

The claims centre around KPMG auditors allegedly retaining and using confidential audit materials from Lendlease to inform their tender for Westpac’s audit, which Lendlease described as unacceptable.In response, KPMG has begun its own internal investigation, though it has indicated it may rely on legal professional privilege for some information.Alongside Yates, Julian McPherson, the head of audit, is also reportedly leaving.ASIC commissioners stressed that the probe currently focuses on individual auditors rather than the firm itself.The inquiry and internal investigations are ongoing, with further actions expected to prevent similar issues in the future.