HSBC Names PwC Auditor, Drops KPMG After More Than Two Decades
HSBC Holdings Plc (HSBA), Europe’s largest bank, appointed PricewaterhouseCoopers LLP as auditor, dropping KPMG LLP after more than two decades.
PwC will audit the 2015 fiscal year for the lender, subject to approval from shareholders at the bank’s annual meeting in May, HSBC said in a statement today.
KPMG won the business in 1991 without going through a bidding process, the lender said in its annual report in March. HSBC paid the accounting firm $80.5 million in 2012 for work including audit, tax compliance, computer security and help valuing assets.
The Financial Reporting Council, a U.K. audit regulator, said last year members of the FTSE 350 Index should put their contracts out to tender at least once every 10 years.
Auditors have been criticized for not spotting practices that led to the financial crisis of 2008. The House of Lords’ Economic Affairs Committee said in a 2011 report said there had been “grave defects in the auditing of banks.”
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