KPMG replaced by small firm as P&O Ferries auditor

P&O Ferries has appointed a boutique Oxfordshire-based firm, Just Audit & Assurance (JAA), as its new auditor following the unexpected departure of KPMG earlier this year.

The appointment marks an unusual move for a company of P&O Ferries’ size.

The transport operator, best known for its Dover-Calais route, carries over four million passengers annually and reported £918 million in revenue in 2022.

Yet its 2023 accounts remain more than eight months overdue, with its former auditor KPMG resigning amid what it described as “difficulties” in preparing the company’s latest filings.

Rather than replacing KPMG with another Big Four firm, P&O has turned to JAA—a four-person firm headquartered in Witney, Oxfordshire.

The decision has sparked discussion about auditor independence and resourcing, especially given the size and complexity of the P&O engagement.

JAA’s majority shareholder and audit signatory, Jonathan Russell, defended the firm’s capacity and independence, noting that it is supported by a wider associate network of 35 professionals and that its approach is grounded in experience rather than scale.

“I can tell you now that the average experience in auditing of my staff is over 20 years,” Russell said.

The firm, established to support smaller company and charity audits, confirmed it will charge £265,000 for the P&O engagement—far less than the £1.3 million fee charged by KPMG for the 2022 accounts.

Russell said he believed that figure was “a stupidly high number,” and argued that a lower fee further reduces concerns about dependence on a single client.

Still, some experts remain cautious. Lord Prem Sikka, professor of accounting and a frequent critic of the UK audit market, told The Guardian and ITV News that JAA’s size raised “serious questions about auditor independence,” noting that the audit fee could constitute a substantial portion of the firm’s annual revenue.

This, he warned, might create “the fear of losing a major client” and affect auditor objectivity.

Russell pushed back against this suggestion:

“My opinion is going to be my opinion. I’m not money oriented,” he said.

He also claimed that P&O had first contacted him about the role in February 2024, and suggested the move reflected broader dissatisfaction with how audits are currently delivered across the market.

“Audit is not necessarily now being delivered how it should be,” he said.

The shake-up at P&O comes during a turbulent period for the Big Four. All four major firms—KPMG, Deloitte, PwC and EY—have faced staff reductions, fee pressure, and reputational scrutiny following a series of high-profile audit failings.

Some mid-sized and large businesses are now exploring alternatives, turning to smaller, specialist firms for a more tailored service.

A growing number of boutique and specialist firms have emerged in recent years to meet shifting expectations around audit and assurance, as some clients seek alternatives to the Big Four.

Despite JAA’s unorthodox appointment, Russell remains confident in the firm’s ability to deliver.

“Yes, you can have a big name, yes, you can have a small name. Does it mean that the audit’s done any better or worse? I don’t know.”