Tuesday 25 October 2016

IFG looks to ditch PwC as audit rules set to trigger big changes

Gavin McLoughlin and Sarah McCabe

Published 10/05/2015 | 02:30

PwC are set to be ditched by IFG
PwC are set to be ditched by IFG

The John Gallagher-chaired financial services company IFG is looking to ditch auditors PwC for Deloitte.

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The €200m valued listed group will put the proposal to shareholders this week.

An IFG spokeswoman said the company decided to put its auditing contract out to tender as part of normal good practice.

It is the first in what is expected to be many auditor changes by Irish listed companies in the face of new EU rules requiring listed companies to rotate their auditors every 10 years. IFG paid PwC €330,000 last year, the Gallagher-chaired company's annual report shows.

Grafton Group, Kerry, DCC and Glanbia are also planning to put their audit contacts out to tender this or next year.

DCC is currently audited by PwC, having reappointed them in 2012. It will change auditors this year. Building group Grafton is currently audited by KPMG. It will do so during the second half of 2015.

Dairy company Glanbia, which is audited by PwC, will put its audit contract out to tender in 2016.

Kerry has been audited by Deloitte since 1986. It will also put its audit out to tender this year.

The new EU rules are aimed at breaking up the stranglehold on big audit contracts enjoyed by the world's four biggest accounting firms: PwC, KPMG, Deloitte and EY.

However, sources say that major contracts are likely to simply change hands among those four rather than go to other audit firms, because of the prestige associated with being audited by a Big Four firm and the resources required to perform audits on large, listed companies.

The new rules also prohibit auditors from providing some other services to audit clients, like tax advice.

This may mean some companies drop their auditors so they can continue to use them for other services.

Sunday Indo Business

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