BDO Replaces KPMG as the New Auditor of Caledonia Investments
Caledonia Investments plc has replaced the Big Four firm KPMG with audit and accountancy firm BDO as its new external auditor.
The investment company’s decision to appoint BDO as its new auditor comes after it conducted a formal and competitive tender process which also included participation from KPMG as well. The appointment of BDO as the investment company’s new auditor was approved at its annual general meeting (AGM) which was held on July 21, 2021.
Caledonia Investments, in its annual report, stated that the objective of the tender process was to appoint an audit firm that would be able to provide the company with high quality audit services.
The company’s audit committee met four times in the financial year ended March 31, 2021 to discuss the audit tender process, and after the completion of the evaluation of all the proposals submitted by the participants to the tenders, the audit committee recommended two audit firms to the company’s board with a stated preference for BDO.
The company’s audit committee believed that BDO’s services were better suited to the investment company’s requirements, with slightly more partner time expected in comparison to other audit firms.
BDO has started planning its transition activities, which were reviewed by the company’s audit committee at the meeting that was held in March 2021.
KPMG will remain as the company’s auditor for the fiscal year ended March 31, 2021, with BDO shadowing the Big Four firm during the audit of the aforementioned financial year with the objective of obtaining detailed knowledge and understanding of the investment company’s operations and systems.
The auditor fee for the fiscal year ending March 31, 2022 was proposed on the AGM held on July 21, 2021.
The company’s 2021 report stated that fees payable to KPMG LLP with regards to services provided to Caledonia investment were £300,000 while the fees paid against non-consolidated subsidiaries were £400,000. The Big Four firm was also paid £47,330 for non-audit services.