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Telco acts following Italian scandal

BT axes PwC as auditor after 33 years

BTBT has axed its auditor PwC following the Italian scandal and appointed KPMG.

PwC has audited BT’s accounts since the telecoms group was privatised in 1984. It will complete the audit of BT’s accounts for the 2017-18 financial year and KPMG then take on the role subject to a shareholder vote at the annual general meeting.

In January, BT was forced to write down the value of its Italian operation by £530 million  after years of “inappropriate behaviour” were uncovered.

It warned that the incident could affect its result for the next two years. The company launched an audit tender process.

In a brief statement to the market today it said: “Following conclusion of the formal audit tender process led by the company’s audit & risk committee, the BT board has approved the proposed appointment of KPMG as auditor.

“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.

BT, KPMG and PwC will commence transition planning immediately to ensure a smooth and effective migration during 2017/18.”

It was revealed last month that chief executive Gavin Patterson and the now-departed finance director will lose their annual bonuses over the debacle in January.

The company also parted company with Corrado Sciolla, head of continental Europe.

It confirmed the management changes when it revealed annual pre-tax profits fell 19% to £2.35 billion in the year to March.

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