Morrison Supermarkets has ended its external audit contract with KPMG and switched to PwC in line with corporate governance guidance from the regulator to tender contracts on a regular basis.
The Bradford-based supermarket chain announced the completion of a formal tender process for its statutory audit contract, in line with best practice.
“Subject to approval at the AGM on June 5 2014, PwC will be appointed as Morrisons’ statutory auditor for the year ending February 1 2015. The board would like to thank KPMG for their significant contribution as Morrisons' auditors over a number of years,” it said.
Last year Morrisons paid KPMG £1.1m, which included £400,000 in fees for auditing the group’s accounts, £200,000 for auditing subsidiaries, £100,000 for taxation services and £400,000 for “other non-audit services”.
Chris Hearld, senior partner for KPMG in Leeds, told the Yorkshire Post that they we disappointed not to be re-selected as external auditor, but recognised that good corporate governance required a regular review of audit relationships.
“We have been proud to serve in this role for a number of years and during this period our partners have delivered audit services of the highest quality. We have a strong professional relationship with WM Morrison Supermarkets and look forward to working with the business in the future.”
The auditor switch follows news of the introduction of mandatory auditor rotation as a result of changes in UK and EU legislation.
Last December rival retailer Marks & Spencer dropped PwC as its auditor, ending a relationship that dated from 1926, and decided to work with Deloitte.