Vodafone appoints Ernst & Young as auditors
UK telco Vodafone Group has appointed Ernst & Young as its new auditor after a search and review process that began late last year.
In a stock exchange statement, Vodafone said it had reached “the conclusion of a competitive tender process for its statutory audit contract. The Board has approved the appointment of Ernst & Young LLP following the completion of the audit of the Group's accounts for the year ending 31 March 2019.
"The appointment will be subject to the approval by shareholders at the Annual General Meeting.”
PWC dumped over Phones 4U collapse
The change of auditor comes amid an on ongoing legal row between Vodafone and its previous auditor, PriceWaterhouseCoopers over the collapse of mobile devices retailer Phones 4U.
Vodafone is one of the UK’s leading companies and is a constituent of the FTSE100 index of leading listed companies ranked by market capitalisation.
PWC had been the company’s auditors since 2014 and Vodafone’s audit contract is thought to be one of the most lucrative in corporate Britain.
"We thank PricewaterhouseCoopers LLP for their significant contribution as Vodafone's auditors over recent years and we look forward to working with Ernst & Young LLP”, said David Nish, Chairman of the Vodafone Audit and Risk Committee.
The UK’s Competition and Markets Authority (CMA) has previously recommended that the auditing system should be overhauled to create a new system of joint audits, which would involve all FTSE-350 companies being obliged to appoint a second auditor from outside the industry's dominant quartet.