Royal Bank of Scotland paid its auditor Deloitte £58.8 million in fees just
as the UK taxpayer stepped in to prevent the ailing lender from collapse, the
Herald has revealed.
Deloitte was handed a £27.4 million pay rise on top of the 31.4 million in
fees it earned in 2007, according to RBS’ most recent annual report.
When Deloitte signed off on the troubled institution’s accounts in 2008, it
did not qualify its audit opinion on any grounds, the report shows.
The firm will be recommended for re-appointment as auditor when the bank’s
shareholders convene for their annual meeting on April 3.
Part of Deloitte’s increased fee revenue is due to RBS expanding in size
after swallowing parts of ABN Amro in 2007. Besides the audit, Deloitte was paid
£20.1 million for other services provided to RBS.
An improved internal audit code is "vital' to developing the City's risk management, former shadow chancellor Ed Balls has said
Internal auditors are earn more than external consulting auditors, analysis by salary-bench marking site Emolument.com has found
ICAS and the FRC have called for action to prevent a potential audit skills gap in the future, with the launch of a new report