Smith & Nephew ends 77-year audit relationship with EY
FTSE 100 company Smith & Nephew replaces EY with KPMG
MEDICAL EQUIPMENT MAKER Smith & Nephew has ended its 77-year audit relationship with EY.
KPMG will replace its Big Four rival, which has audited Smith & Nephew since the FTSE 100 company listed in 1937, for the year ending 31 December 2015.
During 2013, fees paid to EY for non-audit work totalled $3m (£1.7m) which equates to 44% of the total audit fees.
The appointment follows a competitive tender process and complies with new European legislation that requires large-listed businesses to change their auditors.
Ian Barlow, chairman of the audit committee, said: “In-line with current corporate governance best practice…this was the right time to conduct a comprehensive, thorough and robust tender process.”
The tender process was delayed for a year following the appointment of chief financial officer Julie Brown in February 2013, the company said.
Brown trained with KPMG and then worked for AstraZeneca, where she served as vice president group finance, and more recently, as interim CFO.