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PwC loses two large audit clients within a month

By Loukia Gyftopoulou

 

After having its 23-year relationship with Tesco ended, PwC is to lose another major client to a Big Four competitor.

Following a competitive tender process for the contract, Royal Dutch Shell said on Tuesday it has proposed that EY replace PwC as its auditor.

This comes a week after Tesco announced it will be replacing PwC with Deloitte following a £263m accounting scandal that hit the UK supermarket last year.

EY will be proposed to shareholders at the 2016 Annual General Meeting as the new auditors to the FTSE 100-listed oil and gas major for the year ending 31 December 2016 onwards.

The firm, which already audits BP and the BG Group in the UK, believes the appointment will strengthen its presence in the oil and gas sector.

EY's UK head of audit Hywel Ball said: "We are really excited to be proposed as auditors to Royal Dutch Shell's shareholders at this pivotal moment for the organisation and are proud to have been selected from among the competition.

A PwC sopkesperon said: "Whilst we are disappointed not to remain as auditor to Shell, we are looking forward to working with them in other capacities in the future.

"The audit market is in a state of flux and highly dynamic, with competition remaining fierce. We expect that over the next five years most of the FTSE will switch their auditors because of new rules. These changes are creating opportunities for us to work with companies in new capacities, including as auditor."

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