PracticeAuditKPMG walks away from TUI Travel audit

KPMG walks away from TUI Travel audit

Auditors cite strained relationship with directors in deciding to move

KPMG HAS WALKED AWAY from FTSE 100 travel company TUI Travel, citing a “strained” relationship with directors after a tumultuous year which saw the company restate its accounts.

In a letter to TUI management, KPMG said its relationship had deteriorated to the point where it was “not confident that in the future we could carry out an audit of the company to the appropriate standard”.

“We have decided not to seek reappointment as auditors of the company,” the firm said in its statutory departure letter.

The 29 December letter follows a turbulent year for the audited company, which wrote off £117m in October after failing to marry two accounting systems. The group’s finance director Paul Bowtell also resigned in October following the restatement.

KPMG said discussions with the company on the restatement had put pressure on the relationship.

“Over the course of these discussions our relationship with certain directors became increasingly strained,” the firms said in its letter.

The £2m audit contract has been handed to PwC, subject to shareholder approval.

In a share market announcement TUI said it “had a good working relationship” with KPMG but believed it was appropriate to seek new auditors.

 

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

7d Emma Smith, Managing Editor
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Carillion collapse: FRC to investigate KPMG over audit work

Audit Carillion collapse: FRC to investigate KPMG over audit work

4m Alia Shoaib, Reporter
Former KPMG partners charged over PCAOB data leaks

Audit Former KPMG partners charged over PCAOB data leaks

4m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

7m Emma Smith, Managing Editor
KPMG rocked by South African corruption scandal

Audit KPMG rocked by South African corruption scandal

8m Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

8m Emma Smith, Managing Editor