Reckitt Benckiser makes their Intention Clear with Regards to Changing PWC as their Auditors

Thursday, May 11, 2017 Print Email
Reckitt Benckiser (RB) has announced their plans to change PWC as their auditor. In another announcement the group has made it clear that KPMG will be the one to replace PwC as auditor of the group from 2018.

The group’s financial statements for the year ending at 31 December 2018 will be audited by KPMG. The decision followed after a tender process was conducted by the group to choose its new auditor. The tender process was overseen by the group’s audit committee.  The board approved the recommendation of appointing KPMG as the auditor of the group for the financial period ending at 31 December 2018.

The audit fee of the current audit is expected to be worth around £5.6m and fee with regards to non-audit services is expected to be worth around £1.4m a year.

The role of the auditor of RB group is being performed by PwC for the past 20 years and PWC will continue in their role as auditor of the group for the financial period ending at December 31, 2017. The official appointment of KPMG as the new auditor of the group will be up for voting by the shareholders at the company’s 2018 AGM.

In the Annual Report of the group for the year ended December 31, 2015, the group’s Audit Committee disclosed that they had started a pre-selection process in 2015 so that to be able to start the tendering process in the year 2017 with an intention to recommend and have a firm ready to be appointed as the new auditor of the group at the 2018 AGM.

According to chairman of RB's audit committee, Ken Hydon, the audit committee of RB has conducted thorough investigation during the tendering process to ensure that the new auditor of the firm meets the criteria of experience, geographical reach and expertise with regards to the consumer health industry.

Ken Hydon also appreciated PWC for its contribution to the group and the work the firm has performed in the role of the group’s auditor that provided assurance to the Board and shareholders of the RB group.

As per the EU and UK law, the maximum period for an audit firm to act in the role of an auditor to a listed company is 20 years and along with this the listed company is required to carry out a competitive tendering process once in every 10 years.

Source: ReadyRatios

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