PracticeConsultingAudit contract for Rover up for grabs

Audit contract for Rover up for grabs

KPMG's contract to audit Rover cars has been thrown into doubt, it has emerged.

The Big Five firm audited the ailing car company as part of BMW’s consolidated accounts, but now the German manufacturer has sold its British subsidiary its audit arrangements could change.

A spokesman for KPMG said the sale of Rover to venture capital company Alchemy had thrown the audit contract ‘up in the air’.

According to UK accounting standards Rover lost considerably less in the run up to last week’s sale than are shown in figures produced by BMW that follow German accounting rules.

The balance sheet shows that for the year ending December 1998 Rover lost around £160m less than is stated in BMW’s accounts.

UK accounts show Rove losing £509m in 1998, while BMW marks the company down with a £670m loss.

Rover quietly submits accounts according to UK rules at Companies House each year but it is BMW’s financial statments produced in line with harsher German standards that grabs the headlines.

Rover blasts German accounting rules as accountant takes the reins

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