EY hired as Sainsbury's ends audit relationship with PwC
Sainsbury's ditches PwC as auditors with EY to vet supermarket's accounts from 2016
EY is to audit the accounts of Sainsbury’s from 2016 after the British grocer announced plans to replace incumbent auditors PwC, ending a 20 year relationship with the firm.
Sainsbury’s said it decided to drop PwC, which is under investigation for its role in Tesco overstating its profits by £263m, following a recommendation by its audit committee after a formal tender process had been conducted, as stated in its 2014 accounts.
Last month, accounting watchdog the FRC launched a probe into Tesco’s accounting black hole, and audit work undertaken by PwC.
PwC will continue as auditors for the year ending 14 March 2015, having been reappointed at the retailer’s 2014 AGM.
Gary Hughes, chairman of Sainsbury’s audit committee, said: “We would like to thank PwC, and specifically the Sainsbury’s audit partners, for their significant contribution as the company’s auditors over many years. Going forward we expect an orderly transition and look forward to working with EY into the future.”