PracticeConsultingBanking arrangements ‘forced’ PwC resignation of Royal Bank of Scotland audit contract

Banking arrangements 'forced' PwC resignation of Royal Bank of Scotland audit contract

PricewaterhouseCoopers was forced to resign from its audit contract with the Royal Bank of Scotland or reconsider its own banking arrangements after the bank's merger with NatWest.

The merger compromised PwC’s independence as auditor since Natwest is the firm’s bank.

And, if the Royal Bank retained PwC as auditor, it stood to lose one of its major corporate clients. Following a feasibility study, PwC told the bank it could make arrangements that would preserve its independence, but the Royal Bank declined to keep its services.

As a result, Deloitte & Touche is now poised to take over as auditor of the merged bank.

A PwC spokesman confirmed NatWest was the firm’s corporate banker but could not say anything further.

The choice of Deloittes is also reported to have come about because had PwC retained the contract, it would have audited three of the biggest clearing banks. It already audits Lloyds TSB and Barclays Bank while KPMG is auditor to HSBC and Halifax.

RBS is reported to have chosen Deloittes because it did not present conflict of interest problems and it wanted to be audited by a Big Five firm.

RBS chief executive Fred Goodwin is a former Touche Ross partner from the days before its merger with Deloittes.

Natwest finance chief quits following Scottish takeover

KPMG and PwC dropped as Royal Bank of Scotland opts for Deloittes

EXCLUSIVE: Mid-tier shake up as accountancy consolidator launched today goes after 12 firms

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer