Deloittes bags FSA audit.
Ernst & Young decided not to seek reappointment in order to avoid a conflict of interest. Its decision led to a competitive tender that was won by Deloittes.
It seems, however, that E&Y’s role will be the more lucrative. The audit fee for 2000/2001 was a comparatively modest £79,000, which was dwarfed by the £612,000 it earned in non-audit fees during the same period.
An E&Y spokesman said: ‘We have been the external auditor for the FSA for a considerable time. However, it was realised the internal audit could be improved by having a hands-on advisor. We have given up the role as external auditor as it is difficult to get a true and fair view if the same party is undertaking both the internal and external work.’
A resolution to appoint D&T as auditors will be put to members at the next FSA annual general meeting. D&T said it was unable to comment due to client confidentiality.
More on the FSA at www.fsa.gov.uk.