KPMG to deliver Royal Mail audit
Newly-privatised postal company ends 27-year audit relationship with EY
KPMG has replaced Big Four rivals EY as auditors of the Post Office, ending a 27-year relationship between EY and the privatised postal company.
Royal Mail announced its intention to tender its audit in January, the first time the contract has been up for grabs since EY was appointed in 1986.
“EY will continue in its current role as Royal Mail’s independent auditor until the end of the 2015 AGM, during which time it will complete the audit of the 2014-15 accounts. EY will work closely with KPMG to ensure a smooth transition,” Royal Mail said in a statement.
EY was paid more than £6m in audit and non-audit fees in 2013 of which £4m was paid relating to the firm’s role in assisting with the privatisation, according to Royal Mail’s latest financial statements.
The win comes as KPMG became the first Big Four firm to be awarded a multi-disciplinary license, , opening the door for the firm to bolster the legal services it provides.
Last month, KPMG revealed it is to overhaul its approach to audit reports, going beyond the FRC’s minimum regulatory requirements for long form audit reports. The firm said it has invited’ its listed client companies to include its findings in so-called ‘long-form’ audit reports, which are published in a listed company’s annual report.
According to the latest statistics from Adviser Rankings, KPMG now audits 394 clients, up from 384 in the first quarter of 2014.