Clients monitor Andersen’s merger

Clients monitor Andersen's merger

The majority of Andersen's major audit clients are monitoring the beleaguered firm after its recent announcement of a merger with KPMG.

With its reputation in tatters, the majority of the Big Five firm’s clients are publicly reserving judgement. And they are still cautious as events unfold and Andersen enters detailed talks with KPMG.

Stephen Gleadle, finance director of IT support services company Synstar, which had its agm on 7 March, confirmed Andersen had been reappointed as auditor but added: ‘It very much depends on the outcome of the talks that are in place at the moment. We’ll see.’

Andersen clients from a techMARK-listed venture capitalist company, which will hold its agm next week, said it was recommending its auditor’s re-election. But the VC added it was monitoring recent events and would take the merger news into account.

Other high profile clients outside the FTSE-100 echoed these views. A spokesman for Newcastle United said: ‘At the moment we’re satisfied with the auditors’ work.’

Andersen’s seven FTSE-100 clients have also come out in cautious support of their auditor, including Cadbury Schweppes who told Accountancy Age Andersen has been its auditor for ten years and it has been satisfied with its work.

A company spokesman said Cadbury’s ‘will seek to reappoint Andersen at the agm [on 9 May] but reserve the right to keep the matter under review’. BSkyB said: ‘We have been happy with the work Andersen has done in the past and we are monitoring events as they occur.’

Recent defections from the firm include broadcasting group The Wireless Group, who would not comment on reports that it dropped Andersen over the weekend, and Abbott Group which switched its audit work to PricewaterhouseCoopers.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource