Global consulting firm KPMG is to replace PwC as auditor of British Telecom.
“Following completion of the audit of the BT accounts for the 2017/18 financial year by PwC, KPMG will be appointed as auditor subject to approval by shareholders at the Annual General Meeting in 2018,” the telecoms giant said today in a statement.
The news comes following a fraud scandal at BT’s Italian operations earlier this year, and ends PwC’s 33-year role as auditor to the former state telco, which was privatised in 1984.
It is reported that KPMG landed the deal ahead of EY, with the other ‘big four’ firm, Deloitte, not participating in the bid due to its existing role as a BT technology consultant.
The auditing crisis had a dramatic effect on BT’s share price and forecasts, forcing it to bring forward an audit tender process that had previously been expected in 2020.
“BT, KPMG and PwC will commence transition planning immediately to ensure a smooth and effective migration during 2017/18,” the company said.