After an audit tendering process conducted by global industry giant, BHP Billiton, Big Four accounting and advisory firm, EY (formerly known as Ernst & Young) has beaten off competition to snap up the auditing of the company from 2019, it has emerged.
EY’s lucrative victory will see it replacing KPMG as the mining giant’s auditor two years from now.
But the audit tendering process organised by BHP followed new regulations that now make it mandatory for firms to rotate their statutory accountants. KPMG, the incumbent auditors did not bid to continue its role as auditor.
KPMG is expected to continue to serve out its remaining period and should audit the company’s sets of account for 2017, 2018 and 2019 before EY takes over from July 1, 2019.
“We are thrilled to be named auditors to BHP Billiton and are proud to have been selected from among the competition,” Hywel Ball, EY’s UK head of audit said.
He added: “BHP is the largest diversified miner in the world. Our global structure, combined with our wealth of experience in the sector, helps enable us to advise international businesses of this scale. We are delighted about the opportunities this audit win will bring to our people across the globe.”
In July, EY also took over the auditing of Tate and Lyle. European Union regulations and the UK Competition and Markets Authority rules required BHP to have a new external auditor in place by 1 July 2023.
Frontpage September 5, 2019