Irish food group Greencore has appointed KPMG as its new auditors following the uncovering of a €21m (£16.5m) fraud.

An internal audit found that significant costs had been concealed at the Irish group's Scottish mineral water division. PricewaterhouseCoopers, the previous auditor, was already facing a probe by the Institute of Chartered Accountants of Ireland over its work at Greencore, RTE reported.

The loss of the audit contract will be a new blow to the firm.

In addition to changing auditors, Greencore had been expected to seek legal redress as well as the return of some of PwC's huge audit fees. In the two-year period of the fraud, PwC charged Greencore fees of more than €1.6m.

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PwC faces probe over Greencore fraud