Diageo ends 17-year audit relationship with KPMG
PwC replaces KPMG as auditors of FTSE 100 drinks manufacturor Diageo
PWC has been appointed as auditors of Diageo after the FTSE 100 drinks manufacturer ended its 17-year relationship with KPMG.
Under changes laid down by the Competition and Markets Authority (CMA) – formerly the Competition Commission – FTSE 350 companies must put their audits out to tender every ten years.
In a statement, Diageo said that “in line with best practice” it had put out its external audit to tender and that PwC has been appointed auditor for the financial year ending 30 June 2016, subject to approval the company’s September 2015 AGM.
Diageo paid KPMG, the group’s auditor since 1997, £7.3m in audit fees last year, according to the group’s 2014 annual report.
Last week, RBS replaced Deloitte – the institution’s auditor since 2000 – with EY.
Similar EU rules that must be adopted by the UK competition watchdog by 2016 require large-listed companies to change the firms that vet their accounts once every 20 years.