Posts Tagged “Big 4”

KPMG have become the new auditors for FTSE food and support services business Compass. The Big 4 firm replaces rival Big 4 firm Deloitte.

Deloitte has been the auditors for Compass for the last number of years. In the 2013 financial year Deloitte earned £7.8m for its work with Compass, of which £3.5m was for non-audit work.

 

Deloitte may also be set to lose the Balfour Beatty audit. The FTSE 250 construction company is to put their audit out for tender in the second half of 2015.

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The Weir Group is expected to put their audit out to tender in 2017. The FTSE 100 engineering company announced they expect to start the tender process in order to comply with the new UK and EU guidance.

Ernst & Young have been the FTSE 100 engineering company’s auditors since before its stock market listing in 1946. The Weir Group announced in its annual report that intends to tender the audit.

Under the new rules introduced by the UK Competition Commission, FTSE 350 companies must now allow audit firms to compete for their audit work at least once every ten years, with organisations that tender less frequently than every five years being forced to report in which financial year audit engagements will be put out to tender.

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PWC has won the tender to become auditors for FTSE 250 real estate investor Derwent London. They replace current auditors BDO. Derwent put its audit out for tender in 2012.

BDO earned £300,000 in audit fees last year. PWC will now be appointed as the firms new auditors for 2014 financial year subject to agreement at the next AGM.

With the Big 4 firm replacing BDO, it is highlighting the trouble mid-tier firms have in competing in the audit market which is dominated by the larger firms.

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Ernst and Young has strengthened it advisory practice through the recruitment of former KPMG partner Mark Hutchinson.

Hutchinson joined KPMG firstly in 1992 when he started his career. He left the big 4 firm 2 years later to join CME KHBB and returned again to KPMG in 1997. In 1999 he left and became partner at Circus Communications before joining Paeson Consulting. He then returned again to KPMG where his last role was a partner and head of management consulting.

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Barclays bank, which is Britain’s second-largest bank, is to replace the current auditor PWC. The Big Four firm has been the banks auditors for a total of 120 years.

Audit firms can now compete for the audit contract but as the bank is trying to implement the new rules set out by the EU and UK designed to encourage competition in the audit market, PWC will not be allowed to take part in the tender process.

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Big 4 firm PWC has acquired IT Consultancy Mokum. Mokum currently have 160 members of staff in their London and Manchester offices. These staff will now join the Big Four firm, with two of them made partner.

Mokum specialises in Oracle applications implementation, managed services and related software. The deal was signed on 13 February and is expected to be formally completed in March, subject to regulatory and independence compliance.

This is another step for the Big 4 firm in its effort to include technology in its services, after increasing demand from its clients for technology expertise in order to support business transformation programmes.

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PWC has been appointed as the new auditors of Vodafone after Britain’s second-largest listed company replaced its auditor for the first time since listing on the stock market.

The Big 4 firm has replaced rival Deloitte. Deloitte had audited Vodafone’s accounts for the past 26 years, and was paid £8m in audit fees by Vodafone in 2013, plus £1m in audit-related fees and £400,000 in non-audit fees.

Vodafone put their audit contract out to tender earlier this year for the first time in 26 years. Read more in our previous blog Big 4 firm may lose major Vodafone audit contract

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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.

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The FRC is going to be analysing the audits of banks and building societies over this year. Attempts have been made to improve the quality of auditing of banks and building societies since the start of the financial crisis but these have been insufficient. As a result the FRC is planning to conduct a formal review of banks and building societies audits.

Within the FRCs draft plan & budget for 2014/25 they plan on conducting a formal review of bank audits in the second quarter of this year as soon as this year’s annual reports have been completed. This is in order to find out why progress in improving their quality has been so slow.

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Audit contracts are changing hands rapidly since the FRC and Competition Commission published their separate recommendations to enforce more frequent tendering of FTSE 350 audits. But recently KPMG managed to hang onto the Standard Chartered audit contract after it went out to tender in August of last year. Read more in our previous blog BIG 4 firm KPMG retains Standard Chartered audit

KPMG have been the banks auditor for 40 years and the big 4 firm earned around £9m last year from the audit.

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