AUDITORS will have the chance to bid for the audit of Weir Group in 2017 after the FTSE 100 engineering company announced its intention to launch a tender process as it complies with new UK and EU guidance.
In its 2013 annual report, Weir Group said it expects to tender the audit, which has been held by EY since before its stock market listing in 1946, when it coincides with the next rotation of the incumbent lead audit partner.
Under rules introduced by the UK Competition Commission, FTSE 350 companies must now allow accountants to compete for their audit work at least once every ten years, with organisations that tender less frequently than every five years being forced to report in which financial year audit engagements will be put out to tender.
Additionally, transitional provisions relating to mandatory firm rotation introduced within the EU mean that Weir Group is likely to be required to change its auditor within six years from July 2014, effectively the 2020 year end.
The external auditor is required to rotate the audit partner responsible for the group audit every five years and the current lead audit partner has been in place for two years, including 2013.
“After due consideration we expect to tender the audit, at the latest, coincident to the next rotation of the incumbent lead audit partner, which would be for the 2017 year end,” Weir Group said in its annual report.
EY earned £2m in audit and assurance fees last year.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Does Darwin's theory apply to taxation? Colin ponders...
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure