Vodafone puts Big Four accounting giants on red alert amid Phones4U litigation

 
Oliver Gill
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Phones 4U collapsed into administration three years ago

Vodafone has asked three of the Big Four accountancy firms to clear the decks in preparation for a potential audit re-tender.

The FTSE 100 telecoms giant may be forced to cut ties with current auditor PwC amid the threat of litigation from the accounting giant, opening the door to Deloitte, KPMG and EY.

PwC is currently managing the collapsed mobile retailer Phones 4U and has been drawing up plans to sue Vodafone for its alleged role in the downfall of the firm.

Read more: Phones 4u co-founder in legal face off against former business partner

Phones 4U fell into administration in September 2014 after leading mobile firms stopped supplying the retailer.

PwC, which won the Vodafone audit in February 2014, may see another FTSE 100 client slip through its grasp. The firm lost Vodafone rival BT earlier this year and Tesco in 2015.

Insiders stressed Vodafone has yet to make a firm decision on PwC's future, instead highlighting Vodafone had contacted PwC's rivals to review any current engagements with the mobile firm and consider if they represented a conflict to performing the audit in the future, Sky News first reported over the weekend.

Vodafone and PwC declined to comment.

Read more: Investors kick out at PwC at BT’s AGM for failure to detect Italy fraud

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