EY resigns as NCC auditor following audit fee disagreement
Big Four firm steps down from listed security software business after it was unable to agree an audit fee
EY HAS RESIGNED as auditor of listed software security business NCC, after it was unable to agree an audit fee with the firm.
Following EY’s resignation. the board announced that KPMG will succeed the firm.
EY said in its resignation letter to the board: “We confirm that the circumstances connected with our ceasing to hold office are that we are unable to agree an audit fee with the company for the year to 31 May 2014.”
The change follows an assessment by the company into the effectiveness and efficiency of the external audit process and the proposed fee income in the coming years.
A statement from NCC said: “KPMG have been appointed as auditors of NCC and its subsidiary companies following a review by the company of the effectiveness and efficiency of the external audit process carried out by Ernst & Young for the year ended 31 May 2013 and their proposed audit fee for the year ended 31 May 2014.”
The audit tender process was carried out in 2011.