Trifast drops KPMG in move to BDO auditors
12 Nov 2019
Following a formal tender process, FTSE listed global engineering company Trifast has hired BDO LLP as auditor ending a 24-year relationship with KPMG
12 Nov 2019
Incumbent auditor KPMG, which has audited the company since 1996, will resign as auditor of the company following completion of the review of the half-yearly financial report for the six months ended 30 September 2019.
The firm did not participate in the tender process due to the rules on the mandatory rotation of auditors, which means that an auditor cannot remain in post for more than 20 years following a change to the rules on audit engagements in 2016 with the introduction of the Audit Regulation and Directive (ARD).
The decision to change auditor was also driven by the pending rotation of the KPMG lead audit partner, which was set to happen in 2020 after five years in post.
In the latest Trifast annual report 2019, for year end 31 March 2019, the chair of the audit committee, Neil Warner, said: ‘The current lead audit director at KPMG was appointed in September 2016 and will be required to stand down no later than the Annual General Meeting in 2020.
‘Accordingly, and in line with the arrangements set out by the EU, the Committee continues to recommend to the Board that the tendering of the external contract should be either at the next rotation of audit lead director or earlier if appropriate circumstances arise.’
KPMG was paid £339,000 in audit fees for the group and the audit of subsidiaries, as well as £51,000 for taxation compliance services and other assurance services.
BDO will start auditing the company's financial statements for the financial year ending 31 March 2020 immediately following KPMG's resignation.
The appointment for subsequent years is subject to approval by shareholders at the next AGM of the company, to be held in 2020.
The board of Trifast said in a statement that it ‘would like to thank KPMG LLP for its significant contribution and service as auditor over the last 24 years’.
Trifast is an international specialist in the engineering, manufacture and distribution of industrial and Category 'C' fastenings principally to major global assembly industries. Key sectors are automotive, domestic appliances, electronics and distributors. The group employs around 1,300 staff across 32 locations across the UK, Europe, Asia and the US.