WHETHER BECAUSE OF or in spite of the EC and Competition Commission investigations, audit tendering has become in vogue among the boards of the FTSE 350.
Recent weeks have seen FTSE 100 investment group Schroders put its audit work out to tender – PwC having held the audit for more than 50 years – while FTSE 250 logistics business Stobart Group has changed from E&Y to KPMG.
Elsewhere in the FTSE 100, ITV is reported to be reviewing the audit contract held by KPMG since 2004.
Such changes are a sign of the pressure being exerted by regulators over audit tenures. It is interesting, then, to note that the FRC changed auditor from Crowe Clark Whitehill to PKF in October last year. CCW had been auditor since the FRC’s inception in 1990, having successfully won a retendering contract in 2006.
Last week, the FRC amended the UK’s governance code so that FTSE 350 companies will have to put their external audit out to tender at least every ten years or explain why they haven’t.
The watchdog’s stance would have been difficult to justify if it had not practiced what it preached.
The Aldermore Future Attitudes report highlights that 1.04m firms with under 250 employees have been affected by a lack of finance in the past 12 months
One of the bigger announcements of the final Spring Budget is the raising of Class 4 NICs for the self-employed
More details are expected to be announced at the Autumn Budget this year, with consultations taking place before the next revaluation in 2022
Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory