BAE set to appoint ethical auditor
BAE is in talks with external auditors but KPMG, which audits BAE accounts, would likely be ruled out on conflict of interest grounds
BAE Systems is ready to publish an external audit of its ethical conduct
within a year, as part of a series of measures to restore its reputation after
allegations of corruption in relation to a big arms contract.
Britain’s largest defence company is expected to announce the measure as
early as this week in response to recommendations by Lord Woolf, former Lord
Chief Justice, about how it could improve its ethical standards, the Financial
BAE is already in talks with external auditors about taking on a role,
according to defence industry executives. KPMG, which audits BAE accounts, would
likely be ruled out on conflict of interest grounds, the FT reported.
The audit is expected to accompany publication of the company’s corporate
social responsibility and annual reports.