Tansy Harcourt

Well, so obviously, yes, Andrew Yates quickly departed last Friday.

And then today, Eileen Hoggart, who is the chief operating officer, was at least temporarily demoted.

So she will remain on as an auditor, but she doesn't have the title of chief operating officer for the time being.

And that's quite significant because...

Even though this is a scandal within Australia, KPMG is part of a cluster in the region.

So it also includes Singapore, very importantly, the Philippines and New Zealand.

And whoever is in charge of Australia and whoever is the chief operating officer and chairman is also in charge of the whole region.

And so particularly in Singapore, there are quite a few partners that are worried about reputational damage expanding to their shores too.

That client certainly does look like it's set to walk.

And I would say that there will be other clients that walk.

I think if you look at Macquarie Group, which is the biggest, that's the whale of auditing in Australia.

So its work is worth kind of up to $100 million.

And they had only just left PwC because of PwC's scandal and gone to KPMG.

And now this has happened.

So

there's a very big question mark about whether they will want to remain with KPMG.

I guess the problem for a company of that size, because they have a lot of international units as well, there's a lot of work that goes into kind of setting up the framework for that audit.

So they might be kind of trying to hold on and see what happens, but they can't be too happy that they've effectively gone out of the fry pan into the fire from going from PwC to KPMG.

Exactly.

And I think that that really says something too.