EY has been appointed as auditor to Iberia, replacing incumbent auditors Deloitte

In a noteworthy shift, the esteemed auditing firm Ernst & Young (E&Y) has taken over the auditing responsibilities for Spain's national carrier, Iberia, displacing the previous auditors, Deloitte.

While E&Y already held the role of auditor for International Consolidated Airlines (IAG) and British Airways, the audit for Iberia remained under Deloitte's purview post the merger with British Airways. This alteration marks a significant change in the auditing landscape.

Hywel Ball, the Head of Assurance for the UK and Ireland at E&Y, expressed the firm's pride in including Iberia among its esteemed clientele. He emphasized the strategic importance of this development, enhancing E&Y's standing in the global aviation sector, a pivotal factor recognized by IAG.

Ball remarked, "Our Madrid and London audit teams have showcased the significance of delivering exceptional client service seamlessly across borders. They operate with a unified voice in navigating through various complex scenarios, offering both challenge and insightful perspectives."

This recent triumph for E&Y in the audit domain follows its recent appointment as the auditor for Land Securities Group, the largest listed commercial property company in the UK. Over the past year, E&Y has secured audit contracts for notable entities such as FTSE 100 BG Group, Dyson, and the Audit Commission.

However, it's worth noting that E&Y faced a setback in March when energy giant Cairn opted to replace them with PwC. Similarly, HSBC initiated a review of its current auditor, HSBC, during the same month.

Further, Dutch-listed insurance group Aegon disclosed plans in February to transition its audit services from E&Y to PwC, contributing to the dynamic landscape of auditing engagements among major corporations.

This surge in tendering activity aligns with the Financial Reporting Council's (FRC) directive, urging companies to either tender their audits every decade or provide a compelling rationale for non-compliance. This 'comply or explain' approach, an integral facet of the UK Corporate Governance Code, aims to foster broader competition in the audit sector, countering the dominance of the Big Four in FTSE 100 and FTSE 350 audits.