£16m Standard Bank audit transfers to EY
FTSE 100 international banking group Standard Chartered has chosen EY to take over from KPMG as its auditor from the year ending 31 December 2020, ending a relationship of over 40 years in response to new requirements to ensure auditor rotation
10 Nov 2017
In a statement, Standard Chartered said following completion of the audit of the company's accounts for the financial year ending 31 December 2019 by KPMG, EY will be appointed as the company's auditor. Following finalisation of the terms of their engagement, the appointment of EY will be recommended to shareholders for approval at the 2020 annual general meeting.
‘The company, EY and KPMG will commence transition planning to ensure a smooth and effective migration,’ Standard Chartered said.
The bank said further disclosure on the tender process will be set out in the 2017 annual report and accounts.
According to the 2016 annual report, the last audit tender was held in 2013, when KPMG was re-appointed, having already fulfilled the role since 1970. Under EU legislation, a mandatory change of auditor was required before December 2021.
KPMG was paid a total of $21.4m (£16.3m) in fees by Standard Chartered in 2016, which included $3.6m (£2.7m) for non-audit services.
Report by Pat Sweet