KPMG loses 26-year audit of Rolls-Royce to PwC, as other listed businesses announced tender results
PwC IS TO TAKE OVER the Rolls-Royce audit, as numerous listed businesses reveal tender results.
Rolls-Royce has announced that PwC will replace KPMG as its auditor. Following the conclusion of a formal tender process led by the company’s audit committee, the board has approved the appointment of PwC. The Big Four firm will be auditing for the financial year commencing 1 January 2018.
The appointment remains subject to approval by the shareholders at the AGM, to be held in 2018. KPMG has been Rolls-Royce’s auditor since 1990. The board of Rolls-Royce has extended its appreciation to KPMG for its contribution over the many years.
Additionally, the healthcare communications and PR group Huntsworth also announced a change of auditor for the year ending 31 December 2016, as EY submitted its resignation in effect from 6 December 2016. PwC will be the statutory auditor going forward.
Swiss iron ore company Ferrexpo also announced a change of auditor to Deloitte from EY, for the financial year commencing 1 January 2017, subject to approval in the May 2017 AGM.
Last week KPMG scooped the Legal and General audit from PwC, having also beat its Big Four rival to Standard Life earlier in the year. The number of audit tenders has ramped up in the last three years, after a regulatory direction of travel was set to enhance competition and quality in the market. These European and UK edicts called for mandatory tendering and audit-holder swapping every 20 years.