Jessica Fino 11 Apr 2017 11:48am

KPMG replaces PwC as Micro Focus auditor

FTSE 100 company Micro Focus International has announced that KPMG will become its external auditor for the year ending 30 April 2018, breaking its 12-year relationship with PwC

The appointment followed a competitive tender process led by its audit committee.

Meanwhile, PwC will continue to undertake this year’s audit, working together with KPMG and Micro Focus to ensure a “smooth and seamless” transition process, the firm said.

PwC has been auditing the software company since its initial public offering in 2005.

Micro Focus said that its most recent change in audit partner took place in 2013, and so partner rotation coincided with the legal requirement to go out to tender.

Reforms proposed by the European Parliament mean that listed companies have to tender their audit contract every 10 years and rotate their auditor every 20 years.

Richard Atkins, chairman of the audit committee at Micro Focus, said, “The board would like to thank PwC for the professionalism and commitment over the years.

“The audit committee carried out a detailed, open and transparent tender process and looks forward to working with KPMG in the future."

Teresa Fisk, partner at KPMG, said, "We are delighted to have been selected to audit another FTSE 100 company with a global footprint, maintaining our position as the largest auditor of listed companies overall. This latest win is testament to our commitment to audit quality which continues to be a key priority for audit committees, the investor community, regulators and the profession.”

KPMG’s appointment will be recommended to Micro Focus’ shareholders during this year’s annual general meeting.