Diageo announced yesterday that it had replaced its auditor KPMG with rival PwC, to bring it in line with new regulations compelling companies to consider changing their accountants every decade.
The alcoholic drinks giant – which produces Guinness – said PwC’s appointment would take effect for Diageo’s financial year ending 30 June 2016, subject to approval at the company’s 2015 annual meeting.
The Competition and Markets Authority (CMA) is bringing in regulatory changes by the end of the year that includes requiring FTSE 350 firms to put their statutory auditor position out for tender at least every 10 years.
The CMA argues the change will encourage competition and will be beneficial for shareholders. However, critics fear that firms will just switch between the big four – PwC, Deloitte, KPMG and EY
James Chalmers of PwC commented: “We are delighted to have been selected as Diageo’s proposed auditor for 2016.”