EY extracts BHP Billiton audit from KPMG
22 Aug 2017
Dual-listed FTSE 100 and Australian Securities Exchange (ASX) miner BHP Billiton has confirmed EY will take over its audit, bringing to an end KPMG’s 21-year incumbency
22 Aug 2017
The Australian-headquartered mining group, has a market capitalisation of £80bn and specialises in iron ore, copper, oil and gas, diamonds, silver, lead, zinc and other natural resources. It paid KPMG £12.7m in the year to 30 June 2016 – the most recent fully audited figures available – made up of £8.1m in audit fees, £2.6m of audit-related fees and £1.9m in non-audit fees, according to Accountancy’s FTSE 100 auditors survey.
Those figures were down on those for the financial year 2015, when KPMG too £22.8m, with £11.6m derived from audit fees, £4m in audit-related fees and £7.1m in non-audit fees.
EY has been appointed as the group’s auditor from the financial year beginning 1 July 2019.
Hywel Ball, EY’s UK head of audit, said: ‘BHP is the largest diversified miner in the world. Our global structure, combined with our wealth of experience in the sector, helps enable us to advise international businesses of this scale. We are delighted about the opportunities this audit win will bring to our people across the globe.’
In its unaudited financial results in the year to 30 June 2017, BHP Billiton said: ‘KPMG, BHP’s current external auditor, did not participate in the tender due to the EU regulations and the UK Competition and Markets Authority rules which require a new external auditor to be in place by 1 July 2023.
‘KPMG will continue in its role and will undertake the audit of BHP for the 2017, 2018 and 2019 financial years, subject to reappointment by shareholders at the 2017 and 2018 Annual General Meetings.’
BHP Billiton’s unaudited financial results in the year to 30 June 2017 are available here.
Its annual report for 2016 is here.