BT asked PwC to move members of the firm’s audit team serving the
telecommunications giant after the company was forced to writedown £1.6bn
following a wrangle over profit assumptions.
Financial Times reports that news of the reshuffle in the audit team
was revealed by Sir Mike Rake, BT chairman and former head of KPMG
International, during the company’s annual general meeting this week.
Though auditors are rotated it is rare for news of a client demanding staff
changes to emerge in public.
The difficulties arose for BT in the accounts for the Global Services
Division during 2008-09. The FT quotes Sir Mike saying that a complete review
has been undertaken and that BT’s internal audit service has been strengthened.
PwC declined to comment to Accountancy Age. It remains unclear which
staff may have been moved or whether changes involved the engagement partner on
the BT audit.
Colin responds to the call for 'Darwinism' in accountancy
Does Darwin's theory apply to taxation? Colin ponders...
Colin comments on the effect of Brexit on the influx of partners at KPMG
Colin provides insight into the Tesco and Unilever scandal over Marmite