RSA replaces Deloitte as auditor

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The FTSE 100 company RSA Insurance has appointed KPMG to take over from Deloitte as its auditor

In announcing its preliminary results for 2012, the insurance group said Deloitte were to undertake additional consultancy work in Scandinavia, “which we and they felt could impair the perception of their independence.”

Deloitte has been the auditor of RSA since 2007 received £9.6m in fees from RSA in 2011, including non-audit services.

The move comes as the industry awaits the response of the Competition Commission report into the audit market. The report, which is expected this week, has already been delayed twice.



The market watchdog had been investigating whether the Big Four accounting firms have an unfair monopoly of the market and whether changing auditors more regularly would help to improve quality. 

Changes to the timetable have prompted suspicion from some commentators that the Commission has struggled to find evidence to support the theory.

Other large firms to recently switch between Big Four firms for audit include Stobart Group, energy group BG Group and Schroders, which ended a 50-year relationship with PwC to appoint KPMG.

Listed accountancy firm RSM Tenon appointed mid-tier firm BDO to replace accountancy giant PwC.

The Financial Reporting Council, a UK regulator, recently called on companies to tender their audit contract at least once a decade. Some investors favour more aggressive action, while the European Commission has been exploring harsher measures.

Helen Roxburgh

 

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