Schroders CFO Kevin Parry talks about the audit market, as tender process for the FTSE 100 group's audit continues
PWC’s LONG-STANDING GRIP as auditor of FTSE 100 investment group Schroders could be about to come to an end, after the work was put out to tender.
PwC, which has held the audit for more than 50 years since Schroders became listed, earned £2.7m for its 2011 audit work. It earned a further £1.8m for audit- and non-audit-related services during the year.
Schroders’ audit committee stated in last year’s annual report and accounts that it would “review the credentials of other providers” for the 2013 audit.
In an interview with Accountancy Age sister publication Financial Director to appear next week, Schroders CFO Kevin Parry (pictured) said that he was “cautious” of saying that compulsory audit rotation was a good thing.
Parry, a former KPMG divisional managing partner, also called on the government and regulators to focus on improving audit quality rather than investigate competition issues.
“We need more skills, checking and diligence, not trying to get more entrants in the [audit] market – I don’t think that’s the main issue,” said Parry.