KPMG retains Standard Chartered audit

by Richard Crump

More from this author

28 Jan 2014

  • Comments
kpmg-canada-square-1

KPMG has successfully retained its £9m audit of Standard Chartered, following a tender process that had been expected to end the Big Four firm's 40-year tenure auditing the bank's books.

The bank, which revealed it would be putting the audit contract on the market in August last year, is expected to confirm KPMG's reappointment in its annual report in the spring, and is unlikely to make a formal announcement before then.

Earlier this month, the bank announced that its finance director Richard Meddings will step down at the end of June, with the bank entering into a major restructuring that will combine its wholesale and consumer banking divisions.

Simon Collins, UK chairman of KPMG, said the firm's audit team was "put through their paces during the rigorous tender process" and that the tender process gave the bank's audit committee "the opportunity to take a cold look at the rigour of our audit".

The decision to reappoint KPMG comes amid pressure from regulators and politicians for large-listed businesses to end longstanding ties they have previously enjoyed with the firms that vet their accounts over concerns of 'cosiness'.

KPMG faced criticism from shareholder governance group Pirc in 2012, after the investor lobbyists called on shareholders to vote against its reappointment as Standard Chartered's auditors. Pirc had claimed that using IFRS had allowed the bank to overstate its financial position by £2.2bn.

Rules introduced last year by the UK Competition Commission, in addition to previous guidelines set down by the FRC, require FTSE 350 companies to re-tender their audit contracts every ten years have led to a rush of contracts changing hands.

KPMG is understood to be one of the few FTSE 100 auditors to have retained its work after facing a competitive tender process - the only other being PwC, which was reappointed as auditors of Schroders after KPMG was forced to decline the opportunity because a conflict of interest that emerged following the tender process.

Other companies to have changed auditor include HSBC, which switched from KPMG to PwC, along with Unilever, Marks & Spencer and Land Securities.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send
HM Revenue & Customs

Head Of Financial Control

HM Revenue & Customs, Telford, Full Time, Permanent/p>

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.