FTSE 100 listed global mining conglomerate BHP has ended its 23-year audit relationship with KPMG, hiring fellow Big Four giant EY, according to Accountancy Daily.
BHP, formerly known as BHP Billiton, announced that it would be changing auditors two years ago due to the changes to UK audit rules which impose a 20-year limit on audit tenures, other than in exceptional circumstances, and would have forced the group to change auditor by 1 July 2023 at the latest.
One of the factors influencing the decision to switch auditors via tender in 2017 was as the lead audit partner at KPMG was due to rotate this year so it made sense to time the audit switch at the same time to reduce disruption.
As the incumbent, KPMG did not take part in the tender process.
The mining giant had been audited by KPMG for 20 plus years since 1996, one of the longest audit relationships left on the FTSE 100 now tough audit rules require listed entities to regularly review and tender their audit business. Read more on Accounting Weekly.