It has been appointed following the competitive tender process announced in the group’s 2016 report and accounts. Subject to shareholders’ approval at the agm in January next year, it will replace its Big Four rival as group auditor for the financial year ending 30 September 2018.
Deloitte has audited the group since 2008 and last year earned £500,000 from the audit and £13,000 from non-audit services largely relating to the half-year announcement.
The firm will stay in post for the audit of Diploma’s 2017 financial statements.
Announcing the change in auditor, Diploma’s audit committee chair Anne Thorburn thanked Deloitte for “its significant contribution” to the company.
In the 2016 audit committee report, she explained that, while the committee remained satisfied that Deloitte had carried out a robust and effective audit “with appropriate challenge of executive management”, it had decided to initiate the tender as the firm was approaching its 10-year anniversary as group auditor.
She added that PwC had met the committee’s “principal criteria of capability, audit quality and cultural fit”.