Macquarie Group has dropped KPMG from its audit contract, according to a statement released on Wednesday by the accounting firm.

KPMG said while it is disappointed by the outcome, it respects the decision taken by Macquarie.

"Today's announcement by Macquarie is a clear reminder that the consequences of our past failings are real," KPMG Chief Executive Officer John Sams said in a statement on Wednesday. "Rebuilding trust will require sustained action, transparency and time."

– ABC business (AU)