PwC picks up another major audit contract
Big 4 firm PWC has won the audit contract for Electrocomponents, replacing rival Big 4 firm KPMG as auditors. Electrocomponents are a FTSE 250 distributor of electronics and maintenance products.
PWC’s appointment as auditors is still subject to approval by the shareholders at the company’s Annual General Meeting this year.
Electrocomponents intends appointing PwC as group auditor for the year ending 31 March 2015. KPMG will continue in the role and will undertake the audit of the group’s consolidated accounts for the current financial year.
KPMG earned £700,000 in audit fees, £100,000 in audit-related fees and £300,000 in non-audit fees from Electrocomponents last year.
Once again this is more changing of audit contracts in the audit market because of the new rules introduced last year by the UK Competition Commission, as well as previous guidelines set down by the FRC. They require FTSE companies to re-tender their audit contracts every ten years in order to try and break the close ties between the companies and auditors. European policymakers are currently pushing through rules that will force auditors to be replaced within a similar time period.
Some of the latest major contracts to change hands include Berkeley Group, Marks & Spencer and Unilever, while Vodafone has put its audit contract on the market for the first time in 26 years. Big 4 firm KPMG managed to hold onto the Standard Chartered audit contract after it went out to tender last year.
Read more about these in our previous blogs
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