PwC loses BG Group audit in competitive tender
Ernst & Young has picked up the audit work for BG Group plc following a competitive tender process.
Incumbent PwC has lost the business, despite holding the contract for 12 years since the FTSE 100’s incorporation in 2000.
The new audit contract will cover the whole group, including subsidiaries, commencing with the 2013 financial year. The appointment will be subject to shareholder approval at the BG Group 2013 AGM.
In 2011, the audit fee for parent company and the Group’s annual report and accounts was US$1.8m (£1.13m), while additional regulatory-related fees were $4.2m. As auditor, PwC earned an annual fee of £6m. Regulatory costs escalated over the past 12 months.
BG Group’s internal audit committee said that after 12 years of using PwC as its auditor, it was ‘an appropriate time to undertake a full tender process for external audit services.
Published 24 October 2012
SOURCE: CCH Online